1.Briefly describe reasons for Phillips and Matsushita to operate internationally. Why do they do it? Describe the international strategy of Phillips and Matsushita using the international strategy classifications we discussed in class (e.g., localization, transnational, global).
Philips and Matsushita are two electronic (equipment and service) based powerhouses who had to expand their business to the international market. One my ask why they needed to operate internationally… each company, Philips and Matsushita, wanted to stand in front of their peer companies as the market leader in the industry. In order to do this, each company would go through various changes, some of which hurt and some of which …show more content…
Matsushita’s strategy also affected their performance based on their international strategy. Due to their firm being highly centralized, change did not come very quickly for the company. Slower changes meant slower adaptation to changing markets the company was in contact with. Also, it is well know that Matsushita has never been an innovation driven company, they are merely a “copy cat” of other companies. Matsushita relies heavily on other competitors’ innovations and is able to mass-produce the product at a lower cost because of the reduced production costs in their area of operations. Although this stance is somewhat risky, it has paid off for Matsushita in the past. One instance when Matsushita outperformed Phillips was when local markets saturated