Philips versus matsushita_final_2

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Philips versus matsushita_final_2

  1. 1. Philips versus Matsushita<br />MBA 270<br />Rekha Srivatsan<br />Aeron Lai<br />September 28th,2010<br />1<br />
  2. 2. Philips-Background<br />Philips was found in 1892 by Gerard Philips in Holland.<br />Philips built its success on a worldwide portfolio of responsive national organizations.<br />Innovation as core strength:<br /> One –product focus<br /> Gerard’s technology prowess<br />Philips is a “lifestyle company” centered on health and well-being.<br /> Focus on product development, brand and channel management.<br />2<br />
  3. 3. 3<br />
  4. 4. Philips- Organizational Development<br />4<br />
  5. 5. Philips- Organizational Development<br />5<br />
  6. 6. Philips-Advantages & Disadvantages<br />Advantages <br />Product innovations<br />National Organizations<br />Increased self-sufficiency<br />Responding to country-specific market <br />Care for its workers<br />Disadvantages<br />Lack of ability to deal with a changing competitive international environment.<br />Higher cost than its competitors <br />Dispute between its NOs and Product Divisions<br />6<br />
  7. 7. Matsushita- Background<br />Founded in 1918 by Konuske Matsushita in Osaka, Japan<br />First Japanese company to adopt the divisional structure<br />One-product-one-division<br />Internal competition forced among divisions<br />Matsushita built its success on its centralized, highly efficient operations in Japan<br />7<br />
  8. 8. 8<br />
  9. 9. Matsushita- Organizational Development<br />9<br />
  10. 10. Matsushita- Advantages and Disadvantages<br />Advantages <br />Disadvantages<br />Led to slower transition<br />Centralized production<br />Cultural aspect <br />Decentralized responsibility<br />Adaptability<br />Global integrated approach<br />HQ control the subsidiaries<br />Cutting costs<br />Gain local responsiveness<br />10<br />
  11. 11. Discussion Questions<br />How did Philips succeed to become the leading consumer electronics manufacturing in the world?<br />Create product innovations<br />Entering international market<br />National Organizations<br />Increased self-sufficiency<br />Responding to country-specific market <br />11<br />
  12. 12. Discussion Questions<br />How did Matsushita succeed Philips as No.1?<br />Matushita’s competencies:<br /> Adaptive organization structure <br /> Low cost<br /> Self-funded research laboratories<br /> Highly competitive-internal environment <br /> Flexible organizational structure <br /> Government support<br />12<br />
  13. 13. Discussion Questions<br />What change do you think each company has made today? Why is it so hard to change?<br />13<br />
  14. 14. Discussion Questions<br />What challenges does Matsushita face?<br />Focus on globalization of the market- sustaining their competitive advantage in low-cost production<br />Transition should be quicker: to reap the benefits of globalization. So far, local to senior level management- been slow<br />14<br />
  15. 15. References<br />http://www.slideshare.net/ivitakops/university-paper-international-strategic-management<br />http://www.slideshare.net/smehro/philips-vs-matsushita-scm<br />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<br />15<br />
  16. 16. Thank You!<br />16<br />

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