3. Process of strengthening Matsushita's strengthIn the late 1980s, Matsushita was able to take advantage of market changes and successfully overtook Philips. As mentioned, the era of globalization is shifting competition in the electronics market from local execution to global competition on price. Compared to Philips' decentralized structures, Matsushita's centralized structure and ability to respond to market opportunities allowed Matsushita to become a global leader at that time. First, while Philips' autonomous subsidiaries reduced their speed of reaction, Matsushita's ability to embrace innovation supported by its centralized structure provided significant productivity. As Daft (2009) argues, when internationalizing, firms generally want to achieve “common organizational goals.” However, it is difficult for them to choose between focusing on global standardization or national responsiveness. Philips' structure was a geographic/product matrix with emphasis on national responsiveness while Matsushita adapted the product matrix structure with delegation of authority to subsidiaries. As shown in F. During the period when global integration forces are strong and domestic responsiveness is weak, Matsushita's structure and mass production capabilities provide them with advantages in providing standardized products at low prices during this period. Figure 1. Model for Adapting Organizational Structure to International Advantage Source: Roderick E. White and Thomas A. Poynter, “Organizing for Worldwide Advantage,” Business Quarterly (Summer 1989), 84-89. Adapted with permission from Business Quarterly, published by Western Business School, University of Western Ontario, London, Ontario, Canada. The main strategic......middle of paper mills......and concentrate production in manufacturing centers.Furthermore, Matsushita's inability to encourage innovation from the local market was also a major drawback. Despite its four locations, the foreign companies continued to act primarily as the implementing arms of the Japan-based product divisions. Matsushita's attempt to transform substantial resources and delegate many responsibilities failed to eliminate local factories' dependence on the parent company. Works Cited Bartlett, CA, Ghoshal, S. and Birkinshaw, JM (1995). Transnational management. McGraw-Hill/Irwin. Bartlett, Calif. (2001). Philips versus Matsushita: A new century, a new cycle. Harvard Business School. Daft, R.L. (2009). Organization theory and design. Cengage learning. Porter, M.E. (Ed.). (1986). Competition in global industries. Harvard Business Press.