Philips versus Matsushita

Case Overview The case describes the development of the international strategies and improvement efforts made by two major competitors in the global consumer electronics industry. The history of both companies is traced and their changing strategic postures and organizational capabilities are documented. Particular attention has been given to the major restructuring each company is forced to undertake as its competitive position is eroded. PHILIPS: Pre-world war II scenario Analysis 1892: The founder set a corporate culture …

…-Growth through acquisitions, product development, capacity increase etc -Organizaed decentralization Till 1991, as Matsushita was following its original development plan, profits were coming in. In 1992 an economic recession changed the focus of the organization to a reactive strategy, which lead to strict centralization and cost effectiveness Recommendation for Matsushita -Decentralize responsibility (transnational organization) -Offshore production & innovation. -Competitive products e.g. Video & audio equipment, -From products to services and systems for OEM customers