Case Study of Royal Philips Lighting
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
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