Panasonic, becoming a world player from Matsushita
Abstract: Throughout their long histories, N.V. Philips (Netherlands) and Matsushita Electric (Japan) had
followed very different strategies and emerged with very different organizational capabilities.
Philips built its success on a worldwide portfolio of responsive national organizations while
Matsushita based its global competitiveness on its centralized, highly efficient operations in Japan.
During the 1990s, both companies experienced major challenges to their historic competitive
positions and organizational models, and at the end of the decade, both companies were struggling to
reestablish their competitiveness. At the start of the new millennium, new CEOs at both companies
were implementing yet another round of strategic initiatives and organizational restructurings.
Observers wondered how the changes would affect their long-running competitive battle.
Abstract: Throughout their long histories, N.V. Philips (Netherlands) and Matsushita Electric (Japan) had
followed very different strategies and emerged with very different organizational capabilities.
Philips built its success on a worldwide portfolio of responsive national organizations while
Matsushita based its global competitiveness on its centralized, highly efficient operations in Japan.
During the 1990s, both companies experienced major challenges to their historic competitive
positions and organizational models, and at the end of the decade, both companies were struggling to
reestablish their competitiveness. At the start of the new millennium, new CEOs at both companies
were implementing yet another round of strategic initiatives and organizational restructurings.
Observers wondered how the changes would affect their long-running competitive battle.