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Philips versus matsushita_final_2
- 1. Philips versus Matsushita MBA 270 Rekha Srivatsan Aeron Lai September 28th,2010 1
- 2. Philips-Background Philips was found in 1892 by Gerard Philips in Holland. Philips built its success on a worldwide portfolio of responsive national organizations. Innovation as core strength: One –product focus Gerard’s technology prowess Philips is a “lifestyle company” centered on health and well-being. Focus on product development, brand and channel management. 2
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- 6. Philips-Advantages & Disadvantages Advantages Product innovations National Organizations Increased self-sufficiency Responding to country-specific market Care for its workers Disadvantages Lack of ability to deal with a changing competitive international environment. Higher cost than its competitors Dispute between its NOs and Product Divisions 6
- 7. Matsushita- Background Founded in 1918 by Konuske Matsushita in Osaka, Japan First Japanese company to adopt the divisional structure One-product-one-division Internal competition forced among divisions Matsushita built its success on its centralized, highly efficient operations in Japan 7
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- 10. Matsushita- Advantages and Disadvantages Advantages Disadvantages Led to slower transition Centralized production Cultural aspect Decentralized responsibility Adaptability Global integrated approach HQ control the subsidiaries Cutting costs Gain local responsiveness 10
- 11. Discussion Questions How did Philips succeed to become the leading consumer electronics manufacturing in the world? Create product innovations Entering international market National Organizations Increased self-sufficiency Responding to country-specific market 11
- 12. Discussion Questions How did Matsushita succeed Philips as No.1? Matushita’s competencies: Adaptive organization structure Low cost Self-funded research laboratories Highly competitive-internal environment Flexible organizational structure Government support 12
- 13. Discussion Questions What change do you think each company has made today? Why is it so hard to change? 13
- 14. Discussion Questions What challenges does Matsushita face? Focus on globalization of the market- sustaining their competitive advantage in low-cost production Transition should be quicker: to reap the benefits of globalization. So far, local to senior level management- been slow 14
- 15. References http://www.slideshare.net/ivitakops/university-paper-international-strategic-management http://www.slideshare.net/smehro/philips-vs-matsushita-scm http://webcache.googleusercontent.com/search?q=cache:oMJ5uiFANscJ:oak.cats.ohiou.edu/~mk419593/Projects/Philips.doc+philips+vs+matsushita+case+analysis+competing+strategic&cd=72&hl=en&ct=clnk&gl=us 15
- 16. Thank You! 16