Yuxuan HuangCase Memo 7 – Philips vs. MatsushitaHow did Philips become the leading consumer electronics company in the world in the post war era? What were Philips capabilities and organizational structure?The second world war greatly effected the electronic markets, and also it creates a number of threats for such companies. But Philips focus on their product, that’s why I think Philips become the leading consumer electronics company. First, Philips did extensive and innovative research. With the help of these researches, Philips identified different country's customer requirements and preferences that vary from country's for electronics. Second, they utilized new advances in production technology. Also, they built their own technical capabilities to address local market conditions to address local market conditions.There are several key capabilities that contribute to this success such as the capabilities of local subsidiaries, the shared leadership within management and the strong and consistent research. And I think the most important is decentralized structure. It supports Philips in competing effectively with local competitors and enables them to adapt with the diverse local market.The organizational structure of Philips is competitive form of the multidivisional structure.Later, how did these capabilities and structure impede Philips business?First, the structure of Philips is too decentralized, and they lacked of good centralized structure. So I think this is one of the impediment of Philips. Then, there is no economy of scale in manufacturing, many technological innovations, but its ability to bring products to market was weak. Difficulties in reorganizing the company when dealing with its growing problems.