Philips versus Matsushita Case Synopsis Two major competitors in the global consumer electronics industry, Philips of the Netherlands and Matsushita of Japan, both have extensive histories that can be traced back more than a century. They have each followed different strategies and have had significant capabilities and downfalls along the way. In general, Philips built its tenured success on a portfolio of responsive national organizations. On the other hand, Matsushita based its global strategy on a centralized and efficient operation through Japan. As they developed and reorganized their international strategies, each company was forced to undertake its strategic posture and restructuring as its competition position fell. During the 1990s, each company experienced specific difficulties to their market share. Both companies struggled to reestablish themselves in the global consumer electronics world. As the year 2000 came around, new CEOs at both companies came up with even more complicated initiatives and reorganizations. Outsiders wondered how each company’s internal changes would affect their endless competitive battle in the industry. The case illustrates how global competitiveness depends on the organizational capability, the difficulty of overcoming deeply rooted administrative heritage, and the limitations of both classic multinational and global models. Study Questions 1. How did Philips become the most successful company in its business during an era when scores of electrical engineering companies were being formed? What impediments and disabilities did Philips' strategic and organizational capabilities bring with them? Philips made a strong push to developing new technologies starting in the 1950s and 1960s. Upon doing so, the company also wanted to translate these technologies into products while adapting, producing, and selling these products within individual national markets. During this time period, most of the companies in the electrical products market were bring formed and racing to diversify. However, Philips decided to stick with what they knew best. They made only light-bulbs. In doing so, their strong focus enabled the company to create significant innovations. Continuing on, Philips also became a leader in industrial research by creating physics and chemistry labs to address both production and scientific problems. The labs developed a tungsten metal filament bulb that brought great commercial success. Philips simple structure and significant innovations gave them the financial support they needed to compete in a time period where competitors were seeking major growth.
Q1. How did the competitive environment change for John Deere Company between the 1970 and 1980?
The light bulb is the way we see in the dark, the way we find our way, the way we know when to go at a stoplight. How did Thomas Edison achieve this invention? Knowledge. Knowledge of electricity and the needs of those around him. In The Great Gatsby, Daisy Buchanan claims that she wants her daughter to be “a beautiful little fool.” In other words Daisy is saying that ignorance is bliss. Some others believe that knowledge is power. The advancement from candles to light bulbs changed the culture entirely. People could easily do the work they needed to after sunset, and it even led to more inventions. We need knowledge to advance, and for this reason powerful knowledge is more valid than blissful ignorance.
Roth was in charge of emergency of Nortel, be that as it may it was affected by both individuals and capital business sector forms. Roth settled on the choice to change Northern Telcom to Nortel and put resources into the web notwithstanding doubt and uncertainity from numerous individuals. The Board of Directors of this organization didn 't know about the money related status of the association which demonstrates that the executives, Roth as CEO, and workers didn 't know about great business hones. Business includes a system of human communications (Collins, 2011). The ascent of Nortel was to some degree from the consideration the organization got from the media and the financial specialists. This consideration affected the choices that Roth
During his absence, with John Sculley in power, the focus shifted to maximization of profit, and product design suffered. Steve Jobs theorized that is was one of the reasons companies decline. “My passion has been to build an enduring company where people… make great products… the products, not the profits, were the motivation. It’s a subtle difference, but it ends up meaning everything”.
This paper will compare and contrast two CEOs that led technology companies through difficult times. Michael Dell CEO and founder of Dell Computers and Andy Grove former CEO and cofounder of Intel each provided quality leadership as their companies faced challenges in the fast-paced computer technology industry. This paper will introduce each man and describe their contributions to their company and the field of management, resistance they encountered, similarities in their professional lives and how they differed. The information about these two success CEOs comes from Jeffrey Krames (2003) book What the Best CEOs Know: 7 Exceptional Leaders and Their Lessons for Transforming Any Business.
...e in which larger companies joined together in order to be able to introduce a new technology into society after the failure of the gas refrigerator, this case highlights the difficulty of introducing a new technology to society, something that still exists in contemporary societies (Schwartz Cowan, 1985, p.212). “If for no other reason, it is important for us to achieve a clearer view of these matters then has been our habit so far” (Winner, 1986, p.39).
Samsung Electronics Company (SEC) began doing business in 1969 as a low-cost manufacturer of black and white televisions. In 1970, “Samsung acquired a semiconductor business” which would be a milestone that initiated the future for SEC. Entering the semiconductor industry would also be the beginning of the turnaround phase for SEC. In 1980, SEC showed the market its ability to mass produce. SEC became a major supplier of commodity products (televisions, microwave ovens and VCRs) in massive quantities to well known original equipment manufacturers (OEMs). For this reason, Samsung was able to easily transition into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008).
- Volberda, H. Morgan, R. Et al. 2011, “Strategic Management: Competitiveness and Globalization”, Cengage Learning EMEA ,Pg 244-258
By 1960, Matsushita’s product line ranged from TV sets to electric ovens and this broad product line ensured a constant stream of sales for the company. In addition, market sales became glaringly obvious for Matsushita, and were able to adapt to the trends of the market, and due to this, Matsushita were able to quickly create and market similar existing products. Ironically, Matsushita were also the first Japanese company to adopt a divisional structure, generating internal competition between each division that was to yield new, innovative products. However, Matsushita were also aware of market differences between the different countries they operated in, and they combated this by implementing ‘Operation Localization’, a method of multinational flexbility (Kogut and Kulatilaka, 1994). Operation Localization was effective as it replaced managers in key positions with local nationals who understood the market better than their
O'Grady, J.D. (2008). Recent Titles in Corporations That Changed the World. In Apple Inc... Santa Barbara, CA: Greenwood. Retrieved from http://ebooks.abc-clio.com/reader.aspx?isbn=9780313362453&id=GR6244-4
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
Stringer aimed to unite cutting-edge technology with entertainment content while reviving Sony’s electronic business. To combat the price drops of rivals Stringer streamlined Sony, unveiling a sweeping restructuring plan that cut 10,000 jobs, shed a number of unprofitable divisions and products and attempted to centralize decision-making (Palmer, 2006).
How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
ABC and High Technology: A Story with a Moral." Management Accounting, March 1996, pp. 37-40. 17. Smith, R.B. "Competitiveness in the '90s."
Currently in the global environment, there is a strong sense of competition that must be achieved through better performance, almost all firms are competing in international markets due to the reduction in barriers for capital and tariffs. With the new changes in both communication and technology, the consequences faced are that production processes are no longer within national boundaries but spread across (Debrah & Smith, 2002).