SWOT Analysis
Strengths
1. Subsidiaries in more than 100 countries with more than 120,000 employees
2. Operates around 110+ production facilities
3. Has a very strong R&D portfolio, with 7 active R&D centers across the globe
4. Market leadership and strong brand equity - market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions with consistent growth rate in emerging market
5. Aligning operations with market conditions to increase productivity - Philips focused on de-layering its management structure to increase speed of execution and lower operating costs, resulted in improvement in efficiency
6. Customer loyalty is high for consumer electronics made by Phillips
Weaknesses
1. Legal tangles tarnish brand image – With over 50 class action anti-trust complaints resulting in investigation against Philips like Lite-on digital solution, CRT division
2. Highly competitive market in electronic appliances from both local and international brands
3.Higher price quotient compared to competitors
Opportunities
1. Growth through the inorganic route is key to Philips
2. Increasing demand for sustainable and green lighting products
3. Growing presence in emerging markets like India and China
4. Push from various government and environmental activists for greener products indirectly promoting the products of Philips
Threats
1. Highly competitive business environment
2. Counterfeit goods - a major threat to manufacturers of branded electronics
3. Environmental and other government regulations
4. Exchange rate fluctuations
5. Availability of cheaper technology in local markets
Competition
Competitors
1. General Electric company
2. LG Electronics
3. Motorola Inc
4. RF Micro devices
5. Samsung Electronics