Philips versus Matsushita

Phillips and Panasonic Case Introduction In the world electronics industry, Phillips in the Netherlands and Panasonic's two major competitors date back more than a century ago. They follow different strategies and have important capabilities and frustration in the process. In general, Philips had a lifelong success with a series of sensitive domestic organizations. On the other hand, Panasonic's global strategy is based on intensive and efficient operation of Japan.

In this lawsuit, Philips and Panasonic, which are highly valued in the global consumer electronics market, were involved. Philips is currently headquartered in Amsterdam, the Netherlands, and Panasonic's Panasonic Company is now headquartered in Osaka, Japan. Both companies are preparing to start a series of strategic initiatives and organization reorganization by 2001. These efforts are designed to maintain a competitive advantage. However, Philips and Panasonic reached this stage with different strategies. Philips has succeeded in establishing an independent / autonomous domestic organization around the world, but Panasonic relies on intensive operation in Japan.

Independence of various departments linked through global strategy has enabled Panasonic to replace Philips as one of the world's leading consumer electronics companies. Panasonic will link its departmental structure to a global strategy through its vision and 250 year plan. Panasonic rapidly expanded sales, Panasonic licensed formats to other manufacturers, fixed manufacturers in VHS format, and adopted OEM policy to make VHS format industry standard. Phillips can not compete with Panasonic and is taking a delay thanks to an autonomous national organization. In addition, all senior management positions work in Phillips, most of their careers work in Philips and many others work in other countries. Finally, Panasonic replaced Philips as one of the world's leading consumer electronics companies with autonomy of various departments linked through a global strategy.