Philips vs Matsushita

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Success Point of Philips
Change of Environment
Philips` strategy

Success Point of Matsushita
Change of Environment
Matsushita‘s strategy

Appendix A
Appendix B

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Despite of late entry on the consumer electronics, Matsushita had taken the first place in sales since 1960 beating Philips.
Several reasons could explain its victory over competitor as follows.

① Its unique organization culture-7 spirit of Matsushita gave it a basis for the growth.
The spirit had the employee focus on the company itself than themselves.
Although it can not be measured by numbers, it is the most important motive for workers
② Center-oriented operation system made it possible to control the overseas subsidiaries
completely, and to transfer the knowledge and experience of head office to the overseas more
easily. Furthermore, it would guarantee the quality of products wherever they are produced.
③ Matsushita found out rosy future of VCR technology in anticipation. Recognizing powerful
demand for VCR, it developed the technology using VHS type.
After VHS became the industrial standard, its sales increased very sharply and longer.
④ Its profit-based operation division system brought competition in good faith among divisions in
the company. For instance, record division developed radio cassette recorder at first, then tape
record division invented dual track record-karaoke machine.

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