Case Study: Matsushita

Introduction

Since the middle of 19th century, there are two great companies among many of companies in the same industry which produce consumer electronic apparatus in the global competitive market. One is Philips from Netherlands, and another one is Matsushita. Both of these companies made a huge success, start from small localization shop to globalize company in the world based on very different strategies and emerged with very different organizational capabilities in their long histories. Throughout their challenges which are historic competitive positions and organizational models they have, it shows that what strategy (internationalize) and company organizational structure they had, and how much it is important and helpful to win in the

In the post-war boom, the company grew rapidly expanding into another consumer electronic apparatus, such as TV, transistor radios, colour TVs, dishwashers, and electric ovens. Matsushita took more than 40 percent of the domestic market in the 1960s, and it had about six times more than a rival company, Sony 's retail outlets were scattered around in Japan. But post-war growth became slowed, and it brought product line expansion and distribution system no longer insured growth. After challenging many strategies to promote sales, the company gradually focused on the export

And it also created a small business environment in the structure and it generated internal competition that spurred each business to drive growth by leveraging its technology to develop new products. This innovating division made substantial profits but later on, the one-product-one-division policy brought a new division to maintain the hungry spirit. This management provided each division with funds to establish largely self-sufficient development, production, and marketing capabilities. While basic technology was developed in the central research lab, the development and technology of the product were developed by each division of Product. Matsushita wanted to make to force them to compete for additional funding between divisions through one interesting strategy which is NOT enough fund to CRL. Every year, the CRL got fund from product divisions through present about their research projects to develop technology for marketable applications. Matsushita had one more special organization culture, which is cultural and spiritual training. They conduct morning checks and let hired new employees have cultural and spiritual training with singing company song for the first seven