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A new century, a new round

Quyen Trinh

on 7 March 2013

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How did Matsushita succeed in displacing Philips as No. 1? Philips versus Matsushita
A New Century, a New Round Different organization structure Autonomous national organizations and product divisions
Organization matrix structure
High centralization Li Yan 5055629
Li Chengjie 5087275
Li Jianwen 5277900
Wu Yue 5055314
Trinh Thi Thu Quyen 5263256 STRENGTHS
Third largest light bulb producer in Europe
Technological innovation
Decentralized marketing and sales
Strong,independent and highly autonomous NOs
Highly responding to country-specific market conditions/customers references
Clearly defined core and non-core businesses WEAKNESSES
Inability to bring product to market/lost market share
Weak control of NOs/internal power struggles
Low response and low speed of reaction to market.
Bad decision from different CEO/ Inability to capitalize on R&D OPPORTUNITIES
New technology helps Philips to better meet their customer’s needs with new and improved products and services.
Technology also builds competitive barriers against rivals
New products helps to expand products to different markets THREATS
Mature market are competitive
Bad economy can hurt the company
Competitor take over and the availability of substitutes products Attributes from established to be a global leader A set of vary products
Technological innovation
Divisional structure
Trade export Challenges after expanding into global market Complete consolidated operational organization
Expatriate managers Revolution-Decentralization Relocated headquarter
Meeting customer's needs
Flattening the hierarchy
Empowering employees 1918 1980s 21st century introduced a flood of new products post war growth slower 1933 1st Japanese compan to adopt the divisional structure 1950s~1960 start export business 1960s open plants in(broad)
countries 1980s 1st place in the consumer electronics industry What happened to Philips and Matsushita? now Panasonic is the world's fifth-largest television manufacturer and is among the world's 20 largest semiconductor vendors 1982:Gerard Philips and his father: opened small lightbulb factory in Eindhoven prevent Philips falling into collapse the third largest light-bulb producer in Europe a leader in industrial research hired 1st export manager 1960s-1990s:dealing with growing problems 1996: Boonstra became globalization financial performance remained poor global competitiveness still in question sold or closed bleeders transform the structure relocated Eindhoven headquarters to Amsterdam focus on established technologies committed major resources to marketing performance improved 1918 1932 Konosuke Matsushita:start production of double-end sockets codify KM's plans in company's creed & "seven spirits of Matsushite" post-war boom focused on export markets 1990: Anton S
T How did Philips become leading consumer electronics company in the world in the postwar era? PHILIPS Maintain the advantages of strengths Reduce disadvantages Overseas operations R&D capability Reinforce the control of the subsidiary Increase the investment on marketing RECOMMENDATION MATSUSHITA Central product division Change the management style Restrict the progress of localization Limit the innovation capability Delegate power to subsidiary Reach consensus on long-term development Philips is organized into 3 main divisions Philips Healthcare Philips Cosumer Lyfestyle Philips Lighting Philips is one of the largest military fire industry in West Europe
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