Case Analysis of ABB and Matsushita



Case Analysis of ABB and Matsushita

Introduction

Thesis Statement

A comparison between ABB's and Matsushita's strategies, and deciding the company that holds competitive advantage.

Purpose of the paper

The main purpose of this paper is to analyze ABB and Matsushita independently and then compare their strategic decisions and assessments of market. Based on this analysis, determine which company holds a competitive advantage.

Overview of the paper

First of all, both companies are introduced briefly. Then the impact of natural and societal environment on the task environment of Matsushita is made. This is followed by the comparison between the two companies' strategies and assessments of market. Based on this, justification is made on which company holds the competitive advantage.

Company Profile of Matsushita

Matsushita Electric Industrial Company Ltd is a Japanese based company that manufactures electronic appliances. It produces a wide range of electronic products. Matsushita is known for its intensive research and development. Each of its division also has its own research and development. The most renowned brand that operates under Matsushita is Panasonic (www.britannica.com).

Company Profile of ABB

Asea Brown Boveri (ABB) is a Switzerland based company that holds the position of a global leader in power and automating technologies. It has an intensive research and development centers around the world that incorporate the various values around the world into its company so as to cater the needs of customers in an efficient manner (new.abb.com).

Discussion

Impact of Development of Natural and Societal Environments on Matsushita

Natural Environment

The various operations of a company can threaten to impact the natural environment. In order to avoid this, different regulations and limitations are set. These include permits to operate, regulations to protect the environment, compliance requirements that the business has to meet (Jeanty, n.d.).

Societal Environment

The societal environmental factors affect the organization in the long term and not in the short term. It includes the changes that take place in technology, changes in the government policies and social and cultural forces (Dobbins, n.d.).

Task Environment

The task environment includes factors that affect the organization directly and play an important role in its success. The organization has a direct relationship with these sectors. They mainly include the customers, suppliers, competitors (Rao, 2010).

Impact on Matsushita

The development and changes in the natural and societal environment affects the task environment of Matsushita which ultimately affects the company itself. If the sociocultural ...