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Philips vs. Matsushita

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Philips vs. Matsushita Assignment Hussain AlmakramiUniversity of Scranton | 11/14/2013 | |

Strategies followed by Philips and Matsushita
Philips focused on their R&D and it tried to be the independent organization. It tried decentralized method to market its products. It had very strong relationships with their suppliers and that’s why it had more than 250 suppliers in the world. It started a program called “partners for growth” to improve its relationship with the suppliers. It tried to take supply from the countries where cost is low like China, France, and Brazil. For marketing and selling their products Philips used very dedicated sales representatives and other options also like indirect channels.
Customer service is very good. It provides 24 hr. service to clients. On the other hand Matsushita focused on centralization and it has highly efficient organization in Japan. It focused on local sourcing but still they got the control of quality and productivity of their goods. It was not dependent on one supplier. It has suppliers in all the parts of the world. It works with its suppliers and has very good relationship with the suppliers which help in maintaining the quality of the goods. It also tried to set up plants and produce raw material for their final products.
Globalization becomes difficult for Philips
It became difficult for Philips to globalize its strategies because of the fast growing competitors in the market. The other factors were also responsible for this. It had a very less profit margin which was around 1-2% only. Their poor global strategy was also because of fragmented management.
It was very slow in bringing new products to the global market for e.g. other competitor introduced microwave in the market before them. As Philips focused on decentralization there was no proper coordination between different departments of...

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