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Philips Versus Matsushita: the Competitive Battle Continues Essay

1. How did Philips become the leading consumer electronics company in the world in the post-war era? What distinctive competence did they build? What distinctive incompetencies? Philips became the leading consumer electronics in the world in the post-war period by a strong investment in research and development of their independent national organizations, and good communication between the organizations. Philips has continued this tradition with fourteen divisions of product development, production and distribution in the world, which is another factor n the success of Philips, national organizations.

Distinctive competence Philips They had built national organizations that recognize a great advantage of the situation and respond to differences in local countries had, and finally product development was based on local market conditions. They also had to transfer their assets abroad in trusts in the United Kingdom and the United States and they moved most of its research staff in England, and senior executives in the United States. There were distinctive in that Philips skills are no longer able to make decisions ad one company’s technology is o put new products on the market, but each had The national organization tried to take care of their own problems and but they have lost the ability to manage the company as a whole administration. They tried to establish areas of products, but they also failed.

2. How did Matsushita succeed in displacing Philips as No. 1? What were its distinctive competencies and incompetencies? Matsushita was able to move Philips as Number 1 in consumer electronics with a unified global strategy, allowing increasing volumes Matsushita to lower the cost of pushing the lowest price, and hey have finally surpassed the strength Philips its related manufacturing. Matsushita basic skills were they. Control of the company’s subsidiaries and a single global strategy, they were allowed to reduce their production and enhance the coastline there were distinctive skills that they do not develop the innovation and they were not able to develop innovative foreign companies.

3. What recommendations would you make to Gerald Kleisterle? To Eumio Ohtsubo? Both Philips and Matsushita changed its business some things better and some things for the worse. Philips has its international corporate culture, but it seems that Philips is finally turning around again and again in his fundamental beliefs in research and manufacturing. It will be difficult, but with all the cost savings they had to do while trying to get there, and they need to have confidence in it. They used to make their production continues to improve in the development of research, but they need to promote innovation, to develop the company where he was. Matsushita will never recover it vocation is terrible and they were slow to respond to the recession in Japan.

They lost their advantage in the manufacture of other low-cost competitors and they do not recover this advantage, because many companies have lost faith in Matsushita and how they do business. We think Philips and Matsushita are the same things need to improve their business. Both companies to consolidate their production by improving innovation, outsourcing products in low-wage countries, back with a strong research and development, and improve communication within the organization. If they do, there should be an increase in revenue over time. You lose money in advance, but it will be worth it in the end.

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