Philips Maps Out A New Direction:
A case analysis
pages 9-1 - 9-3
December 21, 2009
Management Policy & Strategy
Philips Electronics is an electronics manufacturer whose roots stem back to the late 1800s. The company was founded in 1891 in the Netherlands and following the Industrial Revolution, they opened a research center for electronics development (Philips, 2009). The company currently produces products for the healthcare industry, lighting, and consumer electronics. Philips used a product driven marketing campaign in local markets until 1995 when the company decided to shift to a global marketing campaign to unite all facets of the corporation (Philips, 2009). This has proved to be the first step of many in reorganizing the company for future endeavors.
Strengths. Lack of debt on Philips' balance sheet is one strength that puts them ahead of their competitors. This coupled with their acquisition strategy in recent years has allowed the company to increase their earnings potential with the introduction of new products. The company has also refocused its product lines, which has improved their available resources and driven up the value of the Philips brand. The move toward a market driven strategy has enabled Philips to focus more on their consumers and competitors rather than the production of products, giving them more of a competitive advantage in the industry.
Weaknesses. Although Philips has many innovative products in the electronics industry, the lack of brand recognition has proved to be one of their biggest weaknesses. Their products are currently marketed under names other than Philips, thereby forcing the company to face branding challenges (Pearce, 2009). Another weakness that can be found in their current situation is their inability to reach revenue goals set forth by the investors. Recognition of these weaknesses has created several opportunities for the company to overcome them....
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