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Matsushita Electronic Industrial
Pham Thach
Executive summary: Matsushita Electronic Industrial (MEI) is a very successful company in both Japan and the global in the 1970s and 1980s. MEI's success in this period came from its diversification of productions, dominance domestic market, unique corporate culture, and divisional structure in both domestic and international market. However, in 1987, under new circumstances, such as the change Yen prices, and the pressure of integration of information technologies that need international transfers, sharing, and synergies, MEI's faced declines in sales and profits because its structure was exposed some weakness. To overcome these problems, MEI should choose Worldwide Product Division Structure.
Matsushita Electronic Industrial (MEI) was established in 1918 by Konosuke Matsushita to produce a double-end socket in Japan. This company grew rapidly, in 1977 MEI was praised by Fortune as "the most dazzling corporate success in Japan", and then ranked 20 on Fortune list of the world's largest by 1985. In the 1980s, MEI became the world's largest producer of customer electronics product, and the forth largest electrical and electronics firm in the world with the compounded annual sales growth and annual growth in net profits was 11.6 percent and 14.6 percent, correspondingly. The success of MEI in the 1970s and 1980s is contributed by its global strategy in which, its diversification of productions, dominance domestic market, unique corporate culture, and divisional structure in both domestic and international market.
Contributing to MEI's rapid growth and consistent profitability in the highly competitive world consumer electronics industry ...