@Nemos, you have rightly analysed phillips situation accurately.
Moreso, as backed by Ariella in a proverbial expressions, that "you can't dip into the same river twice, because it is always changing and flowing".
Ariella, you are right, Phillips did not evolve with the changes in the electronics industry. It relied on its good old name and suffered the "disease of the giants" as put by Nemos. ( I like both analytic expressions)
Nevertheless, Frans Van Houten the CEO and president believed phillip can still capture growth based on the company's new direction under his leadership.
Well, we'll watch the space and hope it works out as planned.
In this fast paced economy, we have seen way too many Corporations going down. Recently the Borders bookstore, Good guys, Circuit City, Blockbusters....
Companies are really not like the old days where consumers are mostly loyal customers. Nowadays people go where they can get the cheapest price at the highest quality. Also the products need to meet consumers taste buds. Having said that, a company can thrive only if they can do all of the above. Or else you are like Apple with the best innovations. Philips need to re-evaluate its corporate strategies to align with the market trends and execute it with diligence to ensure they are providing the highest grade of products at the lowest costs and shortest lead time
Gone are the days when everyone was really drunk of Philips products. I cannot emerging how the name started fading away from the our generation. Philips products are still highly respected, the glory can be restored if they remain focused and maintains the quality that the company believes in. Philips and Sony are just like brothers and sisters that had made land marks in electronics. I still remain confident that Philips can revamp the strength and regain the consumer confidence.
Nemos: Yes, disease of giants definitely seems to be an appropriate way of thinking about Philips and others. And like Ariella said, no river is the same as it changes constantly. Companies want to get big and global, but then become less focused and cumbersomely complex when they reach a certain maturity.Like you all said, Philips has a good reputation and plenty of consumer loyalty. Deciding how it will serve its most important niches while innovatively thinking ahead is now one of its biggest challenges.
Philips still has a good following with consumers, and in this day and age that is definitely needed if you’re going to survive. Selling off their television segment was a good idea based on all the options out there for televisions. The unfortunate downside to all of this reorganization will surely be some job losses. If Philips can start to get back to new and innovative products and continually improving best sellers, they have potential to remain profitable.
Philips once enjoyed the “Royal” power in consumer electronics sector. Sometimes back they had done the diversification and formed Philips medical electronics and NXP. Initially both these companies performed well and contributed much to the flag ship company. But later, I don’t know really what happens internally. Hope they will back in royal position once again through though financial control and better business strategy.
Its the same formula no matter what year we are in. At least it is good to see that the CEO is very much hands on in making changes aimed to improve Philips' performance. Getting rid of its TV business will probably help in that regard.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.