Philips VS Matsuchita case

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Philip became the leading consumer electronic through their external focus. Philips started by producing a single product. This made the company make greater innovations in that single product creating prestige for the company. Other competencies were the creation of their own labs to address production problems and create new developments. The diversification of the market, internationally and local joint ventures helped Philip to gain market acceptance. It helped the company to know the different needs of the countries they were operating in. After the war Philip created the Organization on strengths, which helped the company to sense and respond to differences of markets. Product development became a function of local markets while NOs took care of the financial, legal and administration area. However, in the long run this division did not help the organization of the company. In my opinion this was a mistake. It was a good idea for each section to have their own responsibilities but they should had reported their conditions between each other to learn about the market need and how both parts of the company needed to adapt to this changes. Other incompetence’s were the unrecognizing of lower cost production areas, the inability to bring products in the market faster than their competitors. In my opinion what most affected the company were the many structure changes and the CEOs shifts. This made the company lack of common goals and objectives.


Matshushita competencies were The introduction of a broad line products, The large amount of domestic retail outlets, their “cultural and spiritual training”, their structure where each division clearly defined profit responsibility of its products, generating internal competition, the shift of production to low-wage countries, the boarder commitments to Asia, recognition of potential markets, quick built of production and give overseas sales subsidiaries more choice over the products they sold. However they did not succeed as much on this objective. Some of their incompetence’s were the division of their wholly owned and overseas companies, the creation of METC as a separate legal entity and High centralized operations. They also give up trying to generate new technology and businesses initiatives. After Morishita became chairman, the company started to focus more on customer need through systems and services. They also integrated their division. In my opinion this will place the company back into the competition. This advantage helped them found the new marketing and selling way.


In my opinion both of the company focused on cutting cost and standardization, ignoring new market demands for more specific segmented products and higher consumer service. Changes were difficult for both companies. For example for Philips it was hard because most of its profits operations were based overseas and after the war their profit went down. They tried to recover though lower cost production and structure changes. They had problems recognizing market changes. In the other hand, Matsushita had an internal focus and when they wanted to diverse internationally, they had problems meeting international need because they always focus in regional requirements.





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