THE STRATEGIC OVERVIEW: CAN PHILIPS SURVIVE WITH ITS RECENT SUBSTANTIAL STRATEGY CHANGES?

Abstract

This paper is dedicated to the strategic analysis of one of the most well-known Dutch brands in the world, Philips. The central, most important question here is whether the major change in its product strategy during the second decennium of the twenty-first century — from consumer electronics such as audio, television and lightning to healthcare sector — provides the sustainable competitive advantage that has comforted Philips for many years by now. After an overview of the company as such, the current strategy is explored through some relevant remarks about its market model, strategy and strengths, weaknesses, opportunities and threats (under SWOT analysis). The future strategy is described with some remarks about the value proposition of Philips, possible strategy changes, a suggested competitive advantage flowchart along with two successful examples of the strategic growth steps.