Philips vs Matsushita Swot Analysis Essays

Satisfactory Essays

Internal Strengths:

* 1900 – Philips was third largest light bulb producer in Europe due to recruitment of Gerard Philips’ brother, an excellent salesman. (C85) * From the beginning, Philips developed a tradition of caring for workers. Built company houses in Eindhoven along with bolstering education and paying employees very well (C85) * Philips refused to diversify in the beginning, keeping a one-product focus and creating significant innovations (C85) * Became leader in industrial research, which led to development of a tungsten metal filament bulb that was a great commercial success (C86) * 1912 – Philips built sales organizations in U.S., Canada, and France (C86) * 1919 – Philips entered Principal
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(C92) * 3,000 jobs were shifted to Asia, shifting production to low-wage countries (C92) * By 2000, Boonstra was able to achieve his objective of a 24% return on net assets (C92) * By 2001, Philips best hope of survival was to outsource most of its basic manufacturing and become a technology developer and global marketer (C93) * Realized that thirty-year quest to build efficiency into global operations failed (C93)

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