Philips versus Matsushita



Philips versus Matsushita

Philips versus Matsushita

Philips of Nederland and Matsushita of Japan are one of the key competitors in the industry of global consumer electronics. The companies hold a rich history which has reflection from more than a century. Both the companies have different assets, capabilities and follow different strategies. Considering the general perspective, Philips has successfully built its brand recognition over time by creating an effective brand portfolio on the national level, extending it to the international. Matsushita's operates on a centralized international strategy with operations throughout Japan. The competitive position of the companies started to fall, and as a result both of the organizations reorganized and restructured the global strategies, as well as the strategic posture. The competitive battle of both of these companies continues, and the case study is based around the organizational capability in contrast with the global competitiveness. It includes the challenges and strategic changes that the brands made for successful penetration in the market (Bartlett, 2001).

In the 1950s and 1960s, Philips effectively started focusing on the technological innovation. The company aimed to transmit these thoughts and plans into actual products, which could be easily adopted and sell in the national and international markets. The best part of Philips's strategy was that they stick to what they knew best and created recognition as a leader of the industrial research. Philips scrapped all the old production plants for the initiation of the new production plants. The effective research and innovation capability enabled the brand to strengthen its product line. This mainly started from the light bulbs which was the rising point for the brand. Unfortunately despite of all these innovations the brand faltered at time, due to the extensive competition by the Japanese competitors. During this process, Philips also faced several problems which made ...