Phillips And Matsushita Case Study

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Phillips, of the Netherlands and Matsushita, of Japan are both companies that focus on electrical technology. With their prominence being located in the consumer electronics industry, it is important to note that the world as a whole is moving towards a more technological focus. As the world is moving in the direction of a more technological society with the consumer electronics industry growing, it was suitable for both Phillips and Matsushita to expand their horizons and operate internationally. The growing demand of technology requires a need for companies to operate on a global scale. Moreover, companies also find foreign operation as a means of cutting costs while still producing quality products through the use of outsourcing. The ultimate financial goes is to meet the needs of a market and generate a profitable turn in the process, which is accessible through foreign commerce. Were both Phillips and Matsushita to decide to stay local, they would quickly lose profit to a larger corporation that is driving to meet the global needs of its consumers and eventually be bought out or simply go bankrupt.
Phillips built its success on a worldwide portfolio of responsive national organizations. The company chose to utilize a localization strategy. This means that they focused on altering the properties and characteristics of their product’s to suit the foreign market’s language, political, legal, and cultural differences. In order to concentrate on local responses, they used highly self-sufficient national organizations but further on adopted a strategy of having each singular product be limited to one specialized division.
Matsushita on the other hand, built its success on its centralized, highly efficient operations in Japan. Un...

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...al for the companies to have all of their resources be independent, rather than relying on other aid through outsourcing.
Ultimately, each of these corporations within the consumer electronics industry have come a long way. They have survived in a business society that has readily evolved and moved towards a whole new era of technology. It is still imperative that corporations do business internationally on a global scale in order to better meet the need of consumers within their industry. However, the ways of doing this have altered with a number of strategic possibilities. Phillips and Matsushita each incorporated a different strategy from one another, with each seeing its profits and downfalls. As the economy and industry have evolved, so must Phillips and Matsushita in order to maintain a stance of being a power player within the consumer electronics industry.

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