1. How did Philips become the most successful company in its business during an era when scores of electrical engineering companies were being formed (e.g., GE, RCA, EMI, Thomson, Matsushita, Toshiba, etc.)? What did it do better than these others?
During the first decade of the 21st century, Philips made a robust to developing technologies. In 1892, Gerard Philips and his father opened a small light-bulb factory in Eindhoven, Holland. After their initial venture failed, they recruited Anton, an excellent salesman and manager. While larger electrical products companies were racing to diversify, Philips made only light-bulbs. They believe what they know well. This one-product focus and technological prowess enabled the company to create significant innovations. Philips also concentrated on research, creating physics and chemistry labs to address production problems as well as more abstract scientific ones. The labs developed a tungsten metal filament bulb that was a great commercial success and gave Philips the financial strength to compete against its giant rivals.
Philips soon forced to look abroad for enough volume to mass produce. The company was soon selling into diverse markets. In 1919, Philips entered into the principal agreement with GE, giving each company the use of other patents. The company also broadened its production line significantly. Philips organizational development, technological innovations, and geographic expansion gave financial strength to compete.
2. How was Matsushita able to overtake Phillips in 25 years? What core strategic competencies gave them competitive advantage? What organizational capabilities help them create those competencies?
The company was founded in 1918 by Matsushita (KM). The company grew rapidly, expanding into battery- powered lamps, electric irons, and radios. In the post-war boom, Matsushita introduced a