Managing in a Global Economy Case Analysis: Business & Marketing Essay

Managing in a Global Economy Case Analysis
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Managing in a Global Economy Case Analysis
How did Philips become successful? What are its core competencies? Did it follow a particular model of internationalization?
Philips became successful mainly because of its human resource. Gerard’s technological prowess gave the company an edge over its competitors in terms of innovations. Also, Anton was adept as a salesman, and because of his efforts, the company increased its profits. Becoming a leader in industrial research also worked to Philips’s advantage since it was able to stay ahead of its competitors with innovative products. Also, the company’s adaptability was its major asset, and this helped it survive the World Wars.
Philips’s core competencies include research and adaptability. As a leader in research, the company was able to ensure that it remained ahead of its competitors. Also, the idea of having individual country organizations become autonomous showcased its adaptability and responsiveness during trying moments.
Yes, Philips followed a particular model of internationalization. It followed the global strategy, which focuses on producing or delivering the same products globally while sacrificing the company’s responsiveness to local requirements.
At the time of the case, prepare a brief analysis of its strengths, weakness, opportunities, and threats (SWOT).
Strengths
* A leader in industrial research.
* Self-sufficiency of national organizations.
* Strong national organizations.
Weaknesses
* Centralization of the 14 product divisions. Led to bureaucracies that reduced the efficiency of the national organizations.
* Failure to adapt during crucial moments.
Opportunities
* New markets were opening up worldwide.
* Technological development also presented an opportunity for Philips to enhance its efforts and become a global leader.
Threats
* Competitors. The threat of competitors was lurking. Companies like Sony and Matsushita soon overtook Philips. However, this threat was always there.
* The outbreak of wars. The wars impeded business, and hence the company’s efforts to enhance the national organizations.
Was it able to implement its strategic advantages in its organization?
Early on, yes. Philips was able to implement its strategic advantages in its organization. However, after the creation of the European Common Market, the company was unable to restructure well enough to seize the opportunities that presented themselves. Trade barriers were eroded, and even though this initially presented a challenge, it also opened doors to many other markets.
Prepare a SWOT analysis of Matsushita at the time of the case.
Strengths
* Presence of a progressive developmental strategy and philosophy.
* Ability to adapt to technological and market changes.
* Us...