Wac – Philips Nv: Dealing with a Global Financial Crisis
Autor: Adnan • May 18, 2018 • 1,197 Words (5 Pages) • 622 Views
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Recommendation
In factoring all the internal and external factors by doing SWOT analysis, I recommend the following steps be considered by Philips to deal with the credit crunch in the short term and come out of the global financial crisis as a robust company in the long term.
- Long Term - Philips must identify its growth geographies in the emerging markets and realize that its future success will heavily depend on it.
Philips must realize that Asia is an important location for production, designing and market expansion. Though it faces tough competition in the area, Philips must take advantage of its great brand equity and use it to maintain and grow its position. Philips can do this by studying the end-user preferences of the area where it is operating in and adjusting their products accordingly to stay competitive. The strategy of localizing a product I believe will greatly help in achieving Philip’s long term growth ambitions, diversifying their geographical markets thereby minimizing the effect of financial downturns experienced in different regions.
- Long Term - Adaptability to changes of market trends by continuing to invest heavily in Research and Development.
Shifts in consumer preferences (pursuit of health and wellness), government regulation (US Energy Independence Act of 2007), rise of self-monitoring among patients (medical devices business model shifting from B2B to B2C), etc. are some of the opportunities that Philips will not be able to take advantage of if it were falling behind in terms of innovation and product development. They say success is only possible when one’s preparation meets the right opportunity. That is why Philips must stay ahead of the curve by investing heavily in R&D to be able to meet these opportunities.
- Short Term - Maximize the advantages of acquired businesses across the globe.
Local operation and connections of acquired companies as mentioned in the examples of Italy and China can help jumpstart in getting a foothold of local talent for operations and using their existing value chains for market expansion.
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