9,813 $m
Philips is an example of a brand committed to aligning its business priorities with its brand strategy. The brand’s Accelerate! program continued to drive operational excellence, increased speed to market, and decreased innovation turnaround time while making the brand more responsive to customer needs. Leadership is focusing on the brand itself as a unique strength of its business system, aligning strategy with a mission to deliver meaningful innovation to customers. Last year’s move to transfer its television business into TP Vision, a joint venture with Hong Kong’s TPV Technology, freed Philips to, as CEO Frans van Houten noted, “focus on expanding market leadership positions across our Healthcare, Consumer Lifestyle, and Lighting sectors.” Philips also sold its Lifestyle Entertainment division to Japan’s Funai Electric Co. earlier this year, which had purchased Philips’ North American TV and DVD operations in 2008. Philips is thus building on its strong brand equity to generate important licensing revenues. As the brand divests its home entertainment business, shifts its Consumer Lifestyle segment toward health, and increases its focus on B2B initiatives, the question for the future remains how Philips will ensure a consistent brand experience and customer understanding across more than 30 diverse product categories and more than 100 countries, which is no trivial task. It remains to be seen how Philips will balance conflicting pulls to diversify and to specialize in its highly competitive industry.