Philips and Matsushita

1562 Words7 Pages
How did Philips become the leading consumer Electronics company in the world of postwar era (when many companies were emerging like GE, RCA, EMI, Thomson, Grunding, Hitachi, Toshiba etc.?) What distinctive competence did they build? What distinctive incompetency? During WOII the Germans had bombing most of Philips industrial plants in the Netherlands. After this happened the management decided to build their postwar organization on the strength of national organizations. Philips called them also NO’s. A important capability in the postwar era was the self-suffiency during the war. What were translated into country-specific market conditions. For example an agreement with three competing television transmission standards who had wrangling. Every nation decides to choose one of the three television transmission and the problem will be helped. So when the NO’s start to built their own technical capabilities, the PD’s (product development) often became a function of local market conditions. So you had the Philips of Canada develop the first color TV. The Philips of Australia the first stereo TV and the Philips of the UK created the first TV’s with teletext. The NO’s take the responsibility for financial, legal and administrative matters. In Eindhoven there were fourteen PD’s located, they were responsible for the development, production and global distribution. The research function kept independent and in Europe and America Philips set up eight separate laboratories. Before the war Philips follows a more corporate-level structure and in the postwar era they followed a geographic/product matrix. The NO’s had the most power in the company. They reported everything to management board. In 1954 the board established the international concern council to formalize regular meeting with the head of all major NO’s. The NO’s were lead by a technical manager and a
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