Innovation and New Product Development Case Study

Philips-Seeking Commercial Success through Innovations

OR

Abstract:
Royal Philips Electronics (Philips), is one of the largest electronics companies in the world. Philips has to its credit over 100,000 patents, including iconic products like compact disc, compact audio-cassette and digital video discs. In 2000, Philips had earned an income of $11.3 billion on sales of $44.4 billion. However, by 2001, its profits started declining and it suffered losses in 2002.This case discusses Philips’ failure to translate its technical expertise into commercial gains and the subsequent turnaround strategy adopted by Philips.

Pedagogical Objectives:

• The case discusses Philips’ failure to convert its technical expertise into commercial gains
• It also discusses the turnaround strategy adopted by Philips.

Keywords : Compact Disc; Philishave; DVD formats; Matsushita; Magnavox; LG Electronics; LCD; Sony Corp.; Innovation Management Case Study; Gizmos; Sense and Simplicity

Contents:

• Introduction
• Background Note
• The Downfall
• Turnaround Strategies
• Looking Ahead