Matsushita

Philips versus Matsushita
Case Analysis

Philips and Matsushita have experienced hard challenges to get competitive position in consumer electronic markets. However, two companies approach different way to enter international business interestingly. Since now, we are going to analysis how and why they pursue different directions.
Philips s organizational structure: multi-domestic strategy
Philips, a Holland company, was successful in small light-bulb industry during the pre-war. Also, it had strength technology competence by focusing on R D activities like opening labs. The company tried to abroad to extend market size for economies of scale. And Philips chose a localization strategy to overcome strong trade barriers and high tariffs compelling local production.
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