Philips V. Matsushita
Philips VS. Matsushita: Competing Strategic and Organizational choices
Case Analysis
Background
Philips and Matsushita are the biggest international players in the consumer electronic market. They have developed strategies and global organizations that can enhance the firms’ capabilities in the global market. Due to the small size market in their country, Philips, Netherland based company, began to look for the international opportunities by developing their overseas business units and creating local joint ventures to market their products in foreign countries, but all other functions still remained in Netherland. However, after the time, Philips started to decentralize their organizations and built their production facilities in different regions to protect its foreign sales from the trade barrier and high tariffs. They developed the national organizations (NOs) and allowed their NOs to create their own technical capabilities and develop products that can response to the change of demands in specific market. Japanese company, Matsushita, began their internationalization by exporting their core products, such as Color TV and VCRs, to the large-scale market. To provide customers with the competitive price, they shifted their basic productions in the low-wage countries, such as Southeast Asia countries, but all advance and high value process remained in Japanese plants. Even though they continue to build their divisions in many regions, Matsushita still tried to keep their offshore operations under the parent company control in order to monitor quality and productivity level on their products.
Situation Analysis
The case analysis will discuss about how firms differently optimize their global efficiency, national responsiveness, and worldwide learning to pursue the success in the emerging global market conditions. There are internal factors, including norms, cultures, communication style, and external factors, such as market demands and world economic situation,
Case Analysis
Background
Philips and Matsushita are the biggest international players in the consumer electronic market. They have developed strategies and global organizations that can enhance the firms’ capabilities in the global market. Due to the small size market in their country, Philips, Netherland based company, began to look for the international opportunities by developing their overseas business units and creating local joint ventures to market their products in foreign countries, but all other functions still remained in Netherland. However, after the time, Philips started to decentralize their organizations and built their production facilities in different regions to protect its foreign sales from the trade barrier and high tariffs. They developed the national organizations (NOs) and allowed their NOs to create their own technical capabilities and develop products that can response to the change of demands in specific market. Japanese company, Matsushita, began their internationalization by exporting their core products, such as Color TV and VCRs, to the large-scale market. To provide customers with the competitive price, they shifted their basic productions in the low-wage countries, such as Southeast Asia countries, but all advance and high value process remained in Japanese plants. Even though they continue to build their divisions in many regions, Matsushita still tried to keep their offshore operations under the parent company control in order to monitor quality and productivity level on their products.
Situation Analysis
The case analysis will discuss about how firms differently optimize their global efficiency, national responsiveness, and worldwide learning to pursue the success in the emerging global market conditions. There are internal factors, including norms, cultures, communication style, and external factors, such as market demands and world economic situation,