Philips versus Matsushita- Case Analysis

Philips versus Matsushita- Case Analysis

Introduction

Matsushita and Philips both are considered as the major and dominant competitors in the worldwide electronics industry for its consumers. Matsushita is from Japan and Philips is from Netherlands. The performance and productivity of both of the companies can be traced back more than a century. Matsushita and Philips both follow different type of management and marketing strategies. Both the companies have had downfalls and considerable capabilities all along their way (Philips, 2010). Generally, Philips has built its success on responsive national organization's portfolio. In contrast to Philips, the global strategy of Matsushita is based on efficient as well as centralized operation through Japan. Both of the companies reorganized and developed their international management and marketing strategies. As a result of this, both of the companies were forced to carry out its strategic posture because their competition position fell. In the period of 1990, both of the companies have had some difficult time towards the market share which disturbed their performance and operations (Philips, 2010).

Both of the companies made possible efforts in order to re-establish and reorganize their business structures in the worldwide consumer electronics industry. When the year 2000 started, new and highly experienced CEOs of both the organizations came up along with more difficult reorganizations and initiatives. Outsiders doubted that internal changes of both the companies will affect their everlasting competitive struggle in the worldwide consumer electronics industry (Philips, 2010). The paper will focus on the risks and weaknesses of both the companies. Moreover, the paper will highlight the changes that have been made by both of the countries. In addition to this, the paper will provide some useful recommendations for both of the companies in order to gain competitive advantage (Philips, 2010).

Discussion

Weaknesses and Risks for Phillips and Matsushita

Philips

The business structure of Philips had always benefitted its business operations in running smoothly. The Philips Company ensures business excellence which is assisting in supporting the operations of business. Philips Company aims to become one of the best organizations all across the world. They aspire to trade, work and invest in the best possible way for supporting their business operations (Philips, 2012). The Philips is aspiring to achieve their business goal through their speed. They are ensuring increment in their business operations and processes as well as in their learning processes in order to succeed in business. Moreover, Philips is gaining teamwork competence for achieving business excellence through working in teams. Besides these strengths, the Philips is experiencing some threats and weaknesses which are challenging their business operations (Philips, 2012).

Weaker distribution network as compared to their competition price is one of its major weaknesses which must be resolved in order to strengthen the operations of their business. The incapability of getting product to market first is also one of its major weaknesses which are challenging its business performance and productivity (Philips, 2012). The ineffective business level strategy and competitive leadership are also its major weaknesses which are challenging the business ...