Philips vs. Matsushita Case Analysis.docx - Philips vs...

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Philips vs. Matsushita Case Analysis Philips became the leading consumer electronics company in the world due to the primary actions he took when he first started the company. He strictly focused on one area at a time, crafting it to perfection. While larger electrical products companies were persistent on diversifying their company, Philips made only lightbulbs. As the company began to grow, Philips realized the potential it has to mass produce its products worldwide. Due to its small domestic market, Philips decided to take his business abroad earlier on compared to his competitors. The company expanded to selling diverse markets in Japan, Australia, Canada, Brazil, and Russia. Not long after, Philips built sales organizations and created local joint ventures in many foreign countries to gain market acceptance. In the end, Philips converted to a decentralized sales organization with autonomous marketing companies in 14 European countries. Once Philips had a strong foundation worldwide, the company broadened its product line and produced other items such as electronic vacuum tubes, radios, and X-ray tubes. In anticipation of the impending war and the effects of it, Philips made sure to be proactive rather than reactive. Philips transferred its overseas assets to two trusts as well as moved most of its vital research laboratories and its top management. As a result, the organization became more independent during and after the war. Postwar, Philips’ management board decided to build the

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