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1. How did Philips become the leading consumer electronics company in the world in the postwar era? What distinctive competence did they build? What distinctive incompetencies?
Philips became the leading consumer electronics in the world in the post-war period by a strong investment in research and development of their independent national organizations, and good communication between the organizations. Philips has continued this tradition with fourteen divisions of product development, production and distribution in the world, which is another factor in the success of Philips, national organizations. Distinctive competence Philips They had built national organizations that recognize a great advantage of the situation and respond to differences in local countries had, and finally product development was based on local market conditions. They also had to transfer their assets abroad in trusts in the United Kingdom and the United States and they moved most of its research staff in England, and senior executives in the United States. There were distinctive in that Philips skills are no longer able to make decisions ad one company's technology is to put new products on the market, but each had the national organization tried to take care of their own problems and but they have lost the ability to manage the company as a whole administration. They tried to establish areas of products, but they also failed.
2. How did Matsushita succeed in displacing Philips as No.1? What were its distinctive competencies and incompetencies?
Competencies: Adaptive organization structure. Low cost. Self-funded research laboratories, highly competitive internal environment, flexible organizational structure. Government support.
Incompetencies: Inability to develop innovative overseas companies; wasn't always the inventor, just went with the times so

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