Philips business case review

PHILIPSSense and Simplicity

Healthcare Philips Healthcare sector is dedicated to providing solutions designed

around the needs of customers and patients. A belief that Philips can make a difference by removing boundaries in

healthcare with innovative and affordable technology solutions throughout the entire care cycle.

Combining unique clinical expertise with human insights to develop solutions that deliver value throughout the care cycle:

From disease prevention to screening and diagnosis, through to treatment, monitoring and health management – wherever care is given: in the hospital or at home.

Consumer Lifestyle Today, Philips is one of the biggest global

players in consumer lifestyle in terms of turnover.

Insightful understanding of people, extraordinary competence in technology and design,

The many synergies within company's channels, partners and supply chain.

Philips delivers deeper experiences in touch with the social and emotional needs of customers in their homes: from a cup of coffee in the morning, to a relaxing evening with an Aurea TV.

Philips products are designed around their users and aim to improve people’s lives every day.

Lighting Philips Lighting is a leading provider of solutions and applications for

both professional and consumer markets. With the new lighting technologies, such as LED technology, and the

increasing demand for energy efficient solutions, Philips will continue shaping the future with ground breaking new lighting applications.

Demand for (energy efficient) lighting in emerging markets continues to grow

Future LED solutions: application IP and luminaries will be essential

City Beautification Automotive Lighting Energy Saving Lighting

Philips was success since its inception, but it faced poor financial performance during the 1990s due to the following reasons :

High manufacturing costs Lack of competitive product

price Growing competition

and Rapid changes in the external environment.

Problems

Philips embarked an improvement program called BEST (Business Excellent through Speed and Teamwork).

And also used several tools and approaches as a part of BEST.

Some of them were :

Philips Business Excellence Model (PBE)

Process Survey Tools (PST)

Balanced Scorecard (BSC)

Solutions

Accolades and Awards• Equal highest-ever placing (41st) on the annual

Interbrand ranking of the world’s most valuable brands

• Philips named ‘Supersector leader’ in the Dow Jones Sustainability Index for the second consecutive year

• Philips won a record-breaking number of 124 design awards in 2012

• UK consumer magazine Which? ranked Philips kettles, irons and Gaggia espresso machines #1 for reliability

• CityTouch online outdoor lighting management system honoured as a top sustainable solution at Rio+20 United Nations Conference on Sustainable Development

Revenue Globally, Philips derives 34 per cent 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.

Analysts say that Philips is likely to retain this pace of growth this year too on the back of double-digit growth that the three core segments are seeing.

DISCLAIMERCreated by Omkar Nawlakhe, NPTI Nagpur, during the Marketing Internship by Prof. Sameer Mathur, IIM Lucknow