LA1 Introduction to strategy
The Company Royal Philips Electronics N.V.
Royal Philips Electronics N.V. is a Dutch electronics company founded in 1891 in the city of Eindhoven. Nowadays Philips is a stock listed company and a well known multinational in many countries on the electronic, health care and lightning market. Philips concentrates on three main core activities; those core activities are Healthcare, Lightning and Consumer Lifestyle. (Koninklijke Philips Electronics N.V., 2013) In 2011 the Philips Company operated in approximately 60 countries. (Management Scope, 2012). The main competitors that Philips compares itself with are: Electrolux, Siemens and General Electric. (Vereniging van Effectenbezitters, 2008) The Strategy
“In a fast-changing world, we are committed to returning superior value to our stakeholders. We will achieve this through leadership in innovation, an absolute focus on the customer, local market relevance, and operational excellence, while costs need to be at least in line with our competitors.” When reading through those lines Philip’s strategy can be concluded as; Philips is active in a rapidly changing markets and are willing to make as much money as possible to return as much value to their stakeholders. Philips is concentrating on innovations to make sure that they are ahead of the competition while keeping a close eye on the costumers, local markets and operational excellence, while the costs cannot be higher as of their competitors. Philips aims to create value by: * Understanding their businesses and markets.
* Having a sustainable competitive advantage (being more sustainable as their competitors). * Getting more strengths for the Philips Group (by having the most talented employees, outperform in innovation, creating a strong brand, a global footprint, leading market positions and a solid balance sheet) in order to deliver global leadership and benchmark performance as company. Creating value can be defined as...
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