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Philips vs Matsushita
Transcript of Philips vs Matsushita
First manufactured lamps and became one of the largest producers in Europe Brand promise
3. Consumer lifestyle 1989: Expanded abroad for foreign markets
1900: 3rd largest light-bulb producer in Europe
1918: Broadened product line significantly
1919: From highly centralized to decentralization Background History 1933: divisional structure-central research laboratory & product divisions (3 divisions-Radio; Lamps and dry Batteries; and Wiring devices, synthetic resins and electro thermal products)
1935: Overseas markets
Post-war boom: Introduced a lot of new products (more than 200)
2000: Transformation & restructuring
2008: End of Matsushita Matsushita Philips History Background Founded in 1918, headquartered in Osaka, Japan
Main business: electronics manufacturing
1. Consumer: AVC Networks & Appliances
2. Devices: Automotive Systems & Industrial Devices & Energy
3. Solutions: Systems and Communication & Eco Solutions & Healthcare & Manufacturing Solutions Philips' strategy Matsushita's strategy Environmental analysis Philips & Matsushita - Similar Market Position SWOT Analysis Philips SWOT Analysis Matsushita Shared Common Conditions Unique Advantages 1. A shared but competitive leadership by the commercial and technical functions.
2. 1930s:Transfer of some activities (research laboratories) to other countries
3. War: building of the post-war organization on the strengths of the National Organizations (NOs).
4. Changes in the management with a cross-functional coordination: leadership by both a technical manager and a commercial manager.
5. 1960s: Reorganization because of competition
6. Over the next 4 decades, 7 chairmen experimented with reorganizing the company to solve the problem 1971 Van Reimsdijk and the Yellow Booklet:
Division of responsibilities between the PDs (product divisions) and the NOs (national organizations).
Dual technical and commercial leadership.
Late 1970s Rodenberg and Dekker: « Tilting the Matrix »
Single management at both the corporate and national organizational levels.
Close of inefficient operations
PDs product management responsibilities and final decisions/NOs responsibles for local profits.
1987 Van Der Klug’s Radical Restructuring:
Designing various businesses as core and non-core
Strengthening the PDs relative to the NOs: 4 core global divisions rather than 14 PDs (linked more directly to markets)
Relocation of many experienced product-line managers to Philips’ most competitive markets.
Globalization of product development and production effort (investment in R&D)
Efficient, specialized multi-market production facilities (Elimination of employees)
1990 Timmer’s « Operation Centurion »
Expanding software, services and multimedia to become 40% of revenues by 2000
1996 Boonstra’s Reorganization
Marketing orientation combined with an Asian expertise.
Outsoucring the production of mobile phones and VCRs
Adaptive product-market strategy
Just 3 divisions: healthcare, lighting and consumer lifestyle 1. Divisional structure: the « Hungry Spirit »
2. « Operation Localization »
3. Lower-cost production
4. R&D partnerships and technical exchanges: development of technology and innovation offshore
5. « Value Creation 21 »: digital networks, home appliance and components. Current Strategies Our recommendations Organizational Development Internationalization Philips
Regain weighted distribution by being listed in more retailers in developed countries (and not only focus on giants)
Take advantage of the sustainable development trend and increasing demand for green products (LED technology...).
Focus on emerging markets
Increase their brand awareness by communicating more through advertisement.
Thank you for your attention!