Philips Group–1990 Harvard Case Solution & Analysis

Threat of New Entrant

The new entrants are not welcomed in the industry and the trends in the industry are not favorable for the new entrants.

On the other hand, Philips is a market leader which is why the threat of new entrants is very low for the company. Secondly, the entry barriers are also high such as the high start-up cost that restricts the new players from entering the market.


The rivalry in the industry is highly intense between some major players. On the global arena, players like Panasonic, Sony, Siemens, etc. are posing major threats to the company.


Philips should ensure that weekly coordination meetings are being held in every department, and the minutes of the meeting should be circulated in all other departments in order to remain updated with each other’s work.

As there is a great increase in competition in the electronics market, innovation is of prime importance. The customer demands better products, something which can top the rest of the products of the competitors; therefore, a weekly deadline should be given to R&D department for making the next possible model of the existing product after brainstorming.

This way they will take lesser time for coming up with innovations as opposed to a competitor and will enjoy first mover’s advantage. However, the product should be global oriented keeping in mind the customer belongs to every nook and cranny of the world. They may also come up with various modified versions of the same product keeping in mind the customer, location and affordability of the people living in that place.

Automation of the plants using robots would ensure that the demand and supply are met as well as it would cut their costs down of hiring more resources and spending millions on their training and development every year in case of a turnover.

In order to bring a cultural change, employees’ consent must be taken slowly and gradually by feeding the idea in their minds. A sudden change may result in a high turnover rate resulting in dissatisfied employees.

Six-sigma concept should be ensured so minimum waste will also help in cutting down the costs. In addition, being active in Corporate Social Responsibility will bring awareness about the company around the world in a very positive manner.

For going global, the company can use methods like joint ventures in various countries and exploit those markets. This approach will help the company to identify its strengths and the strengths of the company selected for the venture and by combining the efforts it can design a unique competitive advantage in that particular market..........................

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