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PHILIPS CASE STUDY
Submitted By:
Kumar Raj
Shivam Gupta
Aditya Raman
Prashant kathuria
Debashree Chakraborty.
INDUSTRY ELECTRONICS
Founded Eindhoven, 15 May 1891
Founder Gerard Philips
Frederik Philips
Headquarters Amsterdam, Nether...
PHILIPS
sense and simplicity
DIVISIONS
 Philips Consumer Electronics
 Philips Lighting
 Philips Medical Systems
 Phili...
• Royal Philips Electronics of the
Netherlands is a diversified
health and well-being company.
• Headquartered ---Netherla...
(1910 to 1940s)
 Philips Metal Filament Lamp Factory Ltd. was
founded in Eindhoven in 1907.
 That was followed in 1912 b...
1990 TO 2015
 In may 1990 when company
posted losses of $2.6 billion,top
management launched a major
initiative known as”...
PHILIPS STREET LIGHT PROJECT
 Philips began operations in India in 1930
with the establishment of Philips
Electrical Co. (India) Pvt Ltd in Kolkata .
...
REVENUE
• Globally,Philips derives 34 percent of its revenues from lighting ,in
India,the figure is 58 per cent.
• In Heal...
PHILIPS
GROWTH OVER THE YEARS
1891 1912 1920 1939 1949 1963 1982 2000 2011 2015
ACQUIRED
THE ASSETS
OF PREETHI.-
INDIA BAS...
Solutions
 Philips embarked an improvement
program called BEST (Business
Excellent through Speed and
Teamwork).
 Have se...
PROCESS SURVEY TOOL
BALANCED SCORECARD
STRATEGY OF PHILIPS
• In 1970-80 Philips acquired Magnavox, Signetics, Sylvania,&
Westinghouse
• In 1990 Philips carried o...
CONTD.
• Philips primary focus was now on product innovation
• To create brand awareness in European market Philips spent ...
CONTD.
• Philips started ‘Borderless Brand Management’ in 2004
• After 2005 Philips started focussing more on consumer wit...
…cont’d
RETAIL
Emerging
urbanization ,
population
growth and
new demand.
AUTO
Philips
offers best-
in-class
lightning
solu...
HEALTHCARE
Supports hospitals and
diagnostic centre
medical equipments
providers for experience
of care
Anesthesia
Cardiol...
COMPETITOR
Matsushita
40%
Sony
10%
Hitachi
Thomson
CASE STUDY
Q:1 Use the standardization versus adaptation arguments to support Philips
strategies worldwide. What are some of its adva...
Standardization and international uniformity has many advantages.
 People can expect the same level of quality of any spe...
Q:2 Offers suggestions to Philips regarding the strategies that it can use to create a
unified, resonant global brand?
Q:3 SOME MAY ARGUE THAT PHILIPS IS A PAN-EUROPEAN BRAND THAT IS TRYING TO
MAKE INROADS INTO THE US. CRITICALLY EVALUATE TH...
Philips case study
Philips case study
Philips case study
Philips case study
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Philips case study

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Philips case study

  1. 1. PHILIPS CASE STUDY Submitted By: Kumar Raj Shivam Gupta Aditya Raman Prashant kathuria Debashree Chakraborty.
  2. 2. INDUSTRY ELECTRONICS Founded Eindhoven, 15 May 1891 Founder Gerard Philips Frederik Philips Headquarters Amsterdam, Netherlands Area served Worldwide Key people Jeroen van der Veer(Chairman) Frans van Houten (CEO) Products Home appliances Lighting Medical equipment Revenue €21.39 billion (2014) Operating income €486 million (2014) Profit €415 million (2014) Total assets €28.35 billion (2014) Total equity €10.86 billion (2014) Number of employees 105,365 (2014) Slogan "Innovation & You" Website www.philips.com/global/
  3. 3. PHILIPS sense and simplicity DIVISIONS  Philips Consumer Electronics  Philips Lighting  Philips Medical Systems  Philips Domestic Appliances and Personal Care  B2B
  4. 4. • Royal Philips Electronics of the Netherlands is a diversified health and well-being company. • Headquartered ---Netherlands, more than 186,000 employees in more than 60 countries worldwide. • Market leader---cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, • It is also right up there in lifestyle products for personal well-being and male shaving and grooming as well as portable entertainment and oral healthcare. Philips Headquarters in Amsterdam, Netherlands
  5. 5. (1910 to 1940s)  Philips Metal Filament Lamp Factory Ltd. was founded in Eindhoven in 1907.  That was followed in 1912 by the foundation of Philips Lightbulb Factories Ltd.  In 1920s,Philips started to diversify its product range.  In the 1920s, the company started to manufacture other products, such as vacuum tubes.  In 1939 they introduced their electric razor, the Philishave.  In 1949, the company began selling television sets. Vacuum Tubes.
  6. 6. 1990 TO 2015  In may 1990 when company posted losses of $2.6 billion,top management launched a major initiative known as”Operation Centurion”.  In 1999,Philips embarked on a worldwide marketing campaign and changed their company’s image to a technology-oriented company rather than a market – oriented one.  In 2001,Philips launched a company wide restructuring program called “Towards One Philips’(TOP) under CEO Gerard Kleisterlee to foster greater co-operation.  The program helped not only in lowering costs but also promoted a spirit of collaboration.  In January 2011 Philips agreed to acquire the assets of Preethi, a leading India-based kitchen appliances company.  In March 2012 Philips announced its intention to sell, or demerge its television manufacturing operations to TPV Technology.  April 2013, Philips announced a collaboration with Paradox Engineering for the realization and implementation of a “pilot project” on network-connected street-lighting management solutions. This project was endorsed by the San Francisco Public Utilities Commission (SFPUC).
  7. 7. PHILIPS STREET LIGHT PROJECT
  8. 8.  Philips began operations in India in 1930 with the establishment of Philips Electrical Co. (India) Pvt Ltd in Kolkata .  In 1948, Philips started manufacturing radios in Kolkata. In 1959, a second radio factory was established near Pune.  In 1970 a new consumer electronics factory began operations in Pimpri near Pune; the factory was closed in 2006.  In 1996, the Philips Software Centre was established in Bangalore, later renamed the Philips Innovation Campus.  In 2008, Philips India entered the water purifier market.  In 2014, Philip's was ranked 12th among India's most trusted brands according to the Brand Trust Report, a study conducted by Trust Research Advisory. PHILIPS INDIA OPERATIONS
  9. 9. REVENUE • Globally,Philips derives 34 percent of its revenues from lighting ,in India,the figure is 58 per cent. • In Health care,the global contribution is 40 per cent.In India it is 18 per cent • In Consumer lifestyle,the company gets 26 per cent of its overall revenues,in India,it is 24 per cent. • Totally the Indian unit closed the fiscal ended march 2012 with revenues of Rs 5,579 crore,growing at a clip of about 23 per cent per annum.
  10. 10. PHILIPS GROWTH OVER THE YEARS 1891 1912 1920 1939 1949 1963 1982 2000 2011 2015 ACQUIRED THE ASSETS OF PREETHI.- INDIA BASED KITCHEN APPLIANCES COMPANY LAUNCHED COMPACT DISC. . INTRODUCED THEIR ELECTRIC LASER. STARTED MANUFACTURING VACCUUM TUBES. . . PHILIPS WAS FOUNDED. PHILIPS LIGHTBULB FACTORY COMES INTO EXISTANCE. PHILIPS BEGAN SELLING TELEVISION SETS. INTRODUCED THE COMPACT AUDIO CASSETTE TAPE FOLLOWED BY “RADIO RECORDER” FEW YEARS LATER. PHILIPS BOUGHT OPTIVA CORPORATION ACQUIRED VOLCANO CORPORATIO N
  11. 11. Solutions  Philips embarked an improvement program called BEST (Business Excellent through Speed and Teamwork).  Have several tools and approaches as a part of BEST.  Some of them are: • Philips Business Excellence Model (PBE) • Process Survey Tools(PST) • Balanced Scorecard (BSC). Problem  Philips was success since its inception, but its faced poor financial performance during the 1990s due to several reason: • Fall of market share. • High Manufacturing Costs. • Lack of competitive product price • Growing competition and Rapid changes in the external environment
  12. 12. PROCESS SURVEY TOOL
  13. 13. BALANCED SCORECARD
  14. 14. STRATEGY OF PHILIPS • In 1970-80 Philips acquired Magnavox, Signetics, Sylvania,& Westinghouse • In 1990 Philips carried out major restructuring program & changed from localized production to global production • Another important change was the appointment of Gerad Kleisterlee as President & Chairman of the company • Philips started to concentrate on its initial core activities
  15. 15. CONTD. • Philips primary focus was now on product innovation • To create brand awareness in European market Philips spent $100 million on advertisement, sponsorship, movie tie-ins, reail promotion worldwide • Apart from it Philips spent $600 million to buy Aegis Group’s Carat International to create a consistent brand experience • Philips also tried direct marketing and internet marketing to reach to its consumers
  16. 16. CONTD. • Philips started ‘Borderless Brand Management’ in 2004 • After 2005 Philips started focussing more on consumer with brand promise of ‘sense and simplicity’ • As a part of TOP initiative, Philips also began a range of new technology. One such technology is ‘Connected Home’ • At present Philips is planning to put digital at the core of its newly merged consumer & healthcare business
  17. 17. …cont’d RETAIL Emerging urbanization , population growth and new demand. AUTO Philips offers best- in-class lightning solutions in OEM & OES e.g. Hyundai INDUSTRY Requires better illumination for performance Reduces operating cost
  18. 18. HEALTHCARE Supports hospitals and diagnostic centre medical equipments providers for experience of care Anesthesia Cardiology Critical care Home respiratory care Radiology PERSONAL CARE Market leader in male grooming equipments Personal care product is introduce in Tier 1 & Tier2 cities Trimmers Razors Wet & Dry electric shaver Steam Iron Hair dryer & straightner HEALTH CARE & PERSONAL CARE SOLUTIONS
  19. 19. COMPETITOR Matsushita 40% Sony 10% Hitachi Thomson
  20. 20. CASE STUDY
  21. 21. Q:1 Use the standardization versus adaptation arguments to support Philips strategies worldwide. What are some of its advantages of its new standardization strategy?
  22. 22. Standardization and international uniformity has many advantages.  People can expect the same level of quality of any specific brand anywhere around the world.  Standardization supports positive consumer perceptions of a product .If a company enjoys strong brand identity and a strong reputation, choosing a standardized approach might work to its benefit.  Positive word-of-mouth means an increase in sales around the globe.  It also includes cost reduction that gives economies of scale. Selling large quantities of the same, non-adapted product and buying components in bulk can reduce the cost-per-unit.  Other advantages related to economies of scale include improved research and development, marketing operational costs, and lower costs of investment.  Standardization is a reasonable strategy at a time where trade barriers are coming down.  Following a standardized approach helps companies aim focus on a uniformed marketing mix specifically focusing on one single product, leaving enough room for quality improvement
  23. 23. Q:2 Offers suggestions to Philips regarding the strategies that it can use to create a unified, resonant global brand?
  24. 24. Q:3 SOME MAY ARGUE THAT PHILIPS IS A PAN-EUROPEAN BRAND THAT IS TRYING TO MAKE INROADS INTO THE US. CRITICALLY EVALUATE THIS STATEMENT?  Philips make $100 million dollar in advertising ,sponsorships movie tie-ins and retail promotions worldwide to boost brand awareness. Philips embarked its star campaign in an attempt to create a more human, imaginative and seductive brand image. Using dynamic state of the arts product, the Philips campaign was able to reach consumers on a very personal manner, thus gaining their trust, loyalty and brand preference. The campaign resonated very well with its target market, well educated ,independent and carefree consumers.  It has its five years sponsorship of the U.S. soccer Federation. This help Philips to reach its young target and more female consumers. Philips thus has 30 second air spots on ABC and ESPN during soccer broadcasts, as well as presence on the stadium billboards, and logo visibility on all training kits and Philips branded goal cameras are highly visible.

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