Philip's vs. Matsushita Essay Example | Topics and Well Written Essays - 2000 words

Philip's vs. Matsushita - Essay Example Both brothers and their father worked hard and by 1900, Philips was the third largest light-bulb producer in Europe. Philips concentrated only on light-bulb technology development. Company policy was to scrap old plants and use new machines or factories whenever advances were made in new production technology. It also established hi-tech laboratories for R&D and it developed a tungsten metal filament bulb that was a great commercial success (Bartlett, 2006, p. 1). In 1899, Philips initiated its offshore business and within a decade it expanded its sales network across Japan, Australia, Canada, Brazil, United State and Russia. In 1919, Philips made an agreement with Genera Electric, giving each company the use of the other's patents. In 1918, Philips introduced the electronic vacuum tubes; eight years it lunched its first radios to market, capturing a 20% world market share within a decade; and during the 1930s, Philips began producing X-ray tubes (Bartlett, 2006, p. 2). During World War II Allied and German bombing had targeted and damaged most of Philips’ manufacturing facilities in the Netherlands, the management board decided to build the postwar organization on the strengths of the national organizations (NOs). The independent NOs had a great advantage in being able to sense and respond to the local market demands and differences. These NOs were also free in financial, legal, and administrative matters, and also to built their own technical capabilities and product development.