Philips vs. Matsushita Assignment
Hussain AlmakramiUniversity of Scranton |
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 ...view middle of the document...
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 the company. It’s departments like manufacturing, marketing and services were not interconnected with each other. Because of the decentralization company became very slow in taking quick decisions and became slow in responding changes in the market and changes in the consumer behavior.
Who is better positioned to compete in the future?
Both the companies have their own competencies and incompetency’s. So, to be better than your competitor you need to focus on your core competencies. But I feel Matsushita is better positioned to grow in future. Because of decentralization Philips is facing lots of problems. Matsushita is focusing on producing better products than its competitor. It is centralized which helps it in taking fast decisions and it is faster in bringing new products in the market and in sensing market needs faster.
Matsushita is sending their Japanese technicians, developers, and managers to other countries and by following this strategy they are able to maintain the same quality of their products across the world and they are also able to control all the overseas offices. There is proper coordination between all the departments of the company. They don’t have any internal issues so they can focus outside i.e. on their customers and will be able to produce better results in future as compared to Philips. Matsushita has greater market penetration because of their diverse range of products from the starting of their business.