Case Study of Royal Philips Lighting

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1. Company Background
Royal Phillips was founded in 1891 when Gerard and Frederick Phillips purchased a factory in Eindhoven, Netherlands. They began their operations in 1892 producing carbon-filament lamps and other electro-technical products. In 1895 Gerard's younger brother Anton began working at the factory. With the help of Anton, the light wire bulbs he designed began to be produced in mass quantities, helping the company begin to expand. By 1920 they were mass producing cathodes and high output vacuum tubes for use in radios. Phillips did not just produce tubes and light bulbs; Philips was one of the first to build a radio transmitter and transceivers. On March 11, 1927 Phillips introduced the first nationally broadcast radio station ever, named PCJ. It could even reach as far Indonesia. PCJ is still on air in some countries, though it was primarily dissolved for more current media. With the introduction of PCJ radio, thousands of people around Europe began to use radios. Phillips radio division was ready to expand outside Indonesia and the Netherlands, but World War 2 had stopped all production with Germany’s occupation of the Netherlands in 1940. Nevertheless, Gerard and Frederick saiL.E.D. to the U.S. and made their business international. Both men fL.E.D. to the United States to keep their business in operation. The business flourished in the United States, but with the end of the war in 1945, they both returned to their home to see what damage had been done during the feud. Many of their facilities had been locked and successfully hidden from the Nazi forces. They came to realize that little damage was done to the original factory and within a month the factories had been restored to full operational capacity. Furthermore, that lack of harm allowed Philips to quickly gain back market share with the company’s swift resumption of production. This time, however they spent more money on Research and Development, in order to consistently develop more cutting-edge products. 2. Product, Production, and how does Royal Philips market it? Over the next 50 years the company actively developed a solid range of products. In 1960, the first television was developed, introducing an entirely new form of media. Furthermore, they invented the VHS tape, alongside their line of cassette audio tapes in 1979. Despite being obsolete pieces of technology today, at one time they were the cutting-edge of technology. However, the product that enabled. Philips to grow the most was the introduction of the rotating electronic razor. Alexander Horowitz developed the rotating electronic razor prior to being brought on staff at Royal Philips. Once the rotating-assembly design had been exhibited to the Philips brothers, the Horowitz and Philips reached an agreement to manufacture his final product. In 1939, Philipshave introduced the first rotating-razor electronic shaver. Although production was halted during World War 2, a far more advanced version was introduced after the war’s end in 1945. This same rotating-razor assembly is still used today in electric shavers, currently considered the superior design in the industry. However, many have attempted to imitate the design, to little success. The extremely popular contemporary brand Sony introduced a design of its own, but was far from popular with its target audience. In recent years, Lumileds is most certainly Philips’ largest acquisition, allowing them to penetrate the light bulb market more fervently. Prior to acquisition in August 2005, Lumileds produced various types of semiconductor diodes, each model differing depending on the application. After acquiring Lumileds, Philips-Lumileds started producing a wide range of high-power and high-efficiency L.E.D.’s (Light Emitting Diodes). Current models of the Lumileds line include Luxeon I, Luxeon III, Luxeon V, Luxeon K2, Luxeon Star, Luxeon Rebel, Luxeon Flash, and Altilon ranging from 1 to 5 watts. The product has a wide range of uses...
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