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Linköping University

Group #2--- Verena Mooyoung Alex Umer Thomas Marina. A Case on Global Integration or Local Responsiveness – “Phillips and Matsushita”. Linköping University. Contents. PHILIPS Matsushita I/R GRID OBSTACLES MAIN ISSUES & FURTHER STEPS CONCLUSION.

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Linköping University

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  1. Group #2--- VerenaMooyoung Alex Umer Thomas Marina A Case on Global Integration or Local Responsiveness – “Phillips and Matsushita” Linköping University

  2. Contents • PHILIPS • Matsushita • I/R GRID • OBSTACLES • MAIN ISSUES & FURTHER STEPS • CONCLUSION Linköping University

  3. Giant of consumer electronics company PHILIPS Decentralization One-product strategy PHILIPS Equipment Consumer preference Self-sufficiency Strong research capability PHILIPS Linköping University

  4. Distinctive competencies PHILIPS 1 Localization Responding to market condition 2 Technology Development capability Linköping University

  5. Distinctive Drawbacks PHILIPS Sales 1 Difficulties on sales 2 Fragmentation NOs VS HQ Implementation 3 Slow Linköping University

  6. Direction PHILIPS AIM Efficient Leverage Redefine Power of NOs Streamlining of Organizational Structure Change to Marketer & Inventor Focus on Existing Technologies Linköping University

  7. Why they are No.1 Company? Matsushita Outsourcing Fast Introduction Efficiency Awareness Matsushita One product – one division Integrated approach Matsushita Linköping University

  8. Distinctive Competencies Matsushita Adaptive Finance Lean operation Matsushita Competition Centralized control Linköping University

  9. Distinctive Drawbacks Matsushita Distribution Brand Matsushita Centralized control Non-core competencies Linköping University

  10. Direction Matsushita AIM Higher Local Responsiveness Search for Strong international Structure Collaboration Move of Operational Control Linköping University

  11. I/R Grid Philips Matsushita Year Matsushita 2000 1970 1990 Non-related Producing Integration I/R GRID Value Management Value Management PHILIPS Slow implementation Research Research Development Development Manufacturing Manufacturing Marketing Marketing Service, etc. Service, etc. Responsibility Centralized Applied product and process innovation Centralized Basic scientific innovation, develop new products Centralized (PDs) Develop and manufacture products Decentralized (NOs) Adapt, manufacture, market, and service products within national markets Decentralized (NOs) Market and service products within national markets Linköping University

  12. Obstacles - Internal PHILIPS Matsushita OBSTACLES • Low control • R&D not market-oriented • Frequent CEO changes • Job cuts  Loss of knowledge • Poor efficiency • Lost focus of core competencies • Ethnocentric approach • Lack of brand awareness • Lack of distribution networks • Unwillingness of management Linköping University

  13. Obstacles – External PHILIPS Matsushita • Great depression • War II bombardment • Loss of leadership • Fast paced industry • Increasing competition • Slow growth after war • Pressure from government • Japanese economic crisis • Fast paced industry • Increasing competition Linköping University

  14. Main issues and further steps PHILIPS MAIN ISSUES & FURTHER STEPS Concentration on core-activities Complicated structure Outsourcing Loss of control Balance of productivity & design Linköping University

  15. Main issues and further steps Matsushita Decreasing domestic demand Customer service orientation Increasing competition Destruction and creation program Financial losses Dependent oversea offices Linköping University

  16. Conclusion Global competition Highly segmented markets Sophisticated customer demand CONCLUSION Core competence identification Balance between integration and responsiveness Linköping University

  17. The End Fin Thank you !!! Linköping University

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