SWOT ANALYSIS

10/26/2012 PHILIPS Prasanth Khanna

INTRODUCTION
The Philips Inc. is a company with 121 years of history. It has made its way from a small carbon-filament lamps producer to the one of the world's biggest electronics companies.

Estd: 15 May 1891 in Eindhoven, Netherlands Founders: Gerard Philips

Fredrick Philips Head quarters: Amsterdam, Netherlands Type of industry: Electronics

Key People: Frans van Houten (CEO)

Jeroen van der Veer (Chairman)

Products Made:
Consumer electronics, Domestic appliances, Lighting, Medical equipment

DIVISIONS:

PHILIPS

Philips Consumer Lifestyle

Philips Healthcare

Philips Lighting

Philips Consumer Electronics

Philips Domestic Appliances

Revenue: 22.579 billion by 2011 Employees: 121,888 employees in across more than 70 countries

SWOT ANALYSIS OF PHILIPS

Every company faces few challenges and weaknesses in its existence, therefore, to know companys strengths and opportunities is desirable to overcome any difficulties that may arise and successfully predict any trends. SWOT Analysis is a marketing tool that gathers and analyse these information about the company. With help of SWOT, which stands for Strengths Weaknesses, Opportunities and Threats, Philips would know how to deliver their products and right services to its customers effectively.

Fig: Basic architecture of SWOT analysis

INTERNAL STRENGTHS
Philips has a recognizable and very strong brand image that was established through the years. The core values and the whole icon of Philips are based on the quality, value for money, innovation, and superiority of the service and on the trust. The product range is wide, modern and of good quality. Philips products and solutions are known to be advanced, easy to use, and designed to meet the needs of all users. Company also has strong intellectual property position as it has a lot of widely used technologies patented as their own innovation. Philipss strength is operations excellence and flexibility of the firm, which helps it to deal with changes. Well built customer and supplier relationships also help the company. Philips is the worlds leading lighting supplier. Strategic alliances are an important part of business at Philips. They enable us to bring new products to the market that we would not have been able to develop on our own. Philips combines with a number of leading global companies to build advanced products and services that touch the lives of people every day.

Operational Excellence

Quality Products

Flexibility of Firm
STRENGTHS

Good Customer & Supplier relationships

Strategic alliances

Fig. Strengths of PHILIPS

INTERNAL WEAKNESSES Philips Inc. operates in fields where competitiveness is very concentrated. However it has strong customer base it should not underestimate the emerging customers; it should keep up with new trends and updating the existing products, actively listen new proposals from customers and staff and continue to promote its brand image via effective advertisements. Another weakness is that Philips employs a huge number of people which work in a variety of different countries. Therefore the company experiences some problems in sharing information between employees and controlling operations of different businesses. New, efficient and less complicated ways of transmitting information between the stores, manufacturing premises, head office and various departments should take place in order to communicate successfully and deliver the most effective customer service.

Fig: Weaknesses & their Remedies of PHILIPS

EXTERNAL OPPORTUNITIES Philips continuously explores new ways to improve products and to offer innovative products to its consumers. Philips Electronics has recently reached the impressive milestone of 100,000 patents, confirming its excellence as a highly innovative company. It has created a program ACCELERATE through which higher and higher quality levels in all products and services will be reached. Technological products of Philips can be more design oriented.Creating jolly, modern and convenient stores with place to rest and have a coffer is another project, which Philips can undertake.

Redevelopment will create good atmosphere in the stores, the changes would encourage customer to stay longer in the stores.

Chance for creating modern & convenient designs Innovative programs for production of quality products New ways to offer innovative products

Redevelopment of stores

Fig: Opportunities for PHILIPS

EXTERNAL THREATS More retailers have understood where the market trends are going; quality, value is the key in today retail sector. Many companies started to produce the same quality products on a cheaper price. Another challenge that not only Philips faces is fast changing environment, where new products are introduced within small space of time. Therefore, keeping track with new trends and products is essential for the business. Spending habits and way how people shop is changing rapidly. People shop more on line, looking for promotions or wait until the sale period. Therefore, improve on-line facilities; friendlier web page would boost the sale and maintaining small promotions in the stores would invite higher number of visitors into the stores.

Fast changing environment

Online Shopping

Latest market trends

THREATS to PHILIPS
Fig: Threats to PHILIPS

Growth of Competetors

CONCLUSION: By the analysis, we can suggest a new set of behaviours into PHILIPS. They are Eager to Win Take Ownership Team up to excel These new behaviours are designed to foster a new performance culture and help them to accelerate to deliver sustainable profitable growth in the coming future.

REFERENCES:
http://www.india.philips.com/ http://en.wikipedia.org/wiki/Philips http://www.technologyreview.in/ http://www.managementstudyguide.com/

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