Reasons Of Phillips And Matsushita

1446 WordsOct 20, 20146 Pages
There are several reasons why Phillips and Matsushita chose to operate internationally. For Phillips, it was due to the small size of their home in Holland. The company was forced to seek aboard for larger places to mass produce. After they hired an export manager, they were on their way to selling to the diverse markets of Japan, Canada, Brazil, and Russia. Soon after, the Phillip’s industry had to build more organizations in the United States, Canada, and France because they were over their capacity. As for Matsushita, during the post-war, they presented a broad line of new products, therefore they needed to seek a bigger sales volume. They opened several domestic outlets and forty percent of them went to Japan. This not only would fix the sales volume issue but also would give them access to the latest market trends. They then looked to export more markets after the growth slowed though the best they could do was an exchange and license contract with Phillips because American companies were unwilling to work together. Matsushita resorted to working with mass merchandisers under a private brand which then pushed them to open plants in Asia, and South America and later assembled operations in all the Americas, Europe and in Wales. Phillips and Matsushita have followed different international strategies and have had substantial skills and downfalls. Phillips followed the localization strategy with great self-sufficient National Organizations units to focus on local responses

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