SGMT 3000 Lecture Notes - Lecture 1: Electric Light
5 Oct 2016
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Department
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Philips vs. Matsushita: The Competitive Battle Continues
Philips (Netherlands) built its success on a worldwide portfolio of responsive
national organization
Matsushita (Japan) based its global competitiveness on its centralized, highly
efficient operations in Japan
Philips
Started out in 1892 as a small family run light-bulb factory. Almost ran out of
business but hired his brother, a salesman and a manager. By 190, Philips was the
third largest light-bulb producer in Europe
Only focused on one-product which lead to continuous innovations
Became leader in industrial research, creating physics and chemistry labs to address
production problems and to innovate.
Because Holland was so Small Phillips expanded internationally, into japan, Canada,
Brazil and Russia.
In 1912 because of overcapacity, Philips started building sales organizations in USA,
Canada and France. They created joint ventures in foreign countries to gain market
share.
They significantly broadened its product line
Philips: Organizational Development
Shared but competitive landscape.
National Organizations adapted to the countries needs which was responsive
The NOs were led by technical and commercial managers like the original Philips
Philips: Attempts at Reorganizing
Many of Philips competitors were moving their production of electronics to South
America and Asia
Van Reimsdijk and the Yellow book
Yellow Book a policy on the division of the responsibilities between PDs and NOs
then wanted to rank all the PDs and close the worst performing ones and convert
the best into International Production Centers (IPC)
it was difficult to close plants, therefore unsuccessful
Kleisterlee’s Refocusing
Philips + lifestyle company
• Invested in high growth medical and lighting segments
• Centered on health and well being
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Philips (netherlands) built its success on a worldwide portfolio of responsive national organization. Matsushita (japan) based its global competitiveness on its centralized, highly efficient operations in japan. Started out in 1892 as a small family run light-bulb factory. Almost ran out of business but hired his brother, a salesman and a manager. By 190, philips was the third largest light-bulb producer in europe. Only focused on one-product which lead to continuous innovations. Became leader in industrial research, creating physics and chemistry labs to address production problems and to innovate. Because holland was so small phillips expanded internationally, into japan, canada, In 1912 because of overcapacity, philips started building sales organizations in usa, They created joint ventures in foreign countries to gain market share. National organizations adapted to the countries needs which was responsive. The nos were led by technical and commercial managers like the original philips. Many of philips competitors were moving their production of electronics to south.
