Philips versus Matsushita: A New Century, a New Round

Philips made it in being the world’s leading company dealing in electronics after during the postwar era since it opted for utilizing the strengths bestowed in national organizations (NOs). These NOs to a considerable measure, increased self-sufficiency and as a result responded expertly to the market conditions of the specific country. Product Divisions (PDs) were a fine-tuning to the needs of the local market. This is because the NOs had built their technical competences on production divisions (PDs) thus Philips stood up to be a distinct company since it had fourteen such PDs.

Irrespective of the novelties in technology that Philips Company had, it could hardly present its product to the market in a convincing manner. On the other hand, Matsushita later displaced Philips from its position as the leading electronics company through its quickened dexterities to come up with new products that equally satisfied the market needs. It was based on a centralized and effective operation. It also narrowed its PDs to a one-product-one structure thus allocating each product a level of profit conscientiousness.

Moreover, any unsuccessful division for two consecutive periods was fixed or its team changed (Bartlett, 2001). With this strategy, Matsushita adequately met the market demand and overdid Philips. For a global electronic company, Philip’s organizational structure seems to have higher success chances. The reason backing this is that its NOs carried out researches and adopted innovation in pursuit of local market responsiveness. Moreover, these NOs are self-sufficient to the specific country’s market conditions which vary worldwide.

With the transfer of its research labs and technologies to the various countries, it would receive more funding. However, this structure fosters challenges that limit the expanse if its activities. For instance, the common market creation made the NOs to be less consequential since trade barriers had been done away with. Moreover, there were incidences of weakened efforts to avail the products to the market due to the increased challenging incidences encountered in the company’s restructuring process. References Bartlett, C. A. (2001). Philips versus Matsushita: A New Century, a New Round. Harvard Business Review

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