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Case Title:

Philips: Restructuring to Make Things Better

Publication Year : 2004

Authors: G Mahesh, Sumit Kumar Chaudhuri

Industry: Home Appliances and Personal Care Products


Case Code: COS0077

Teaching Note: Available

Structured Assignment: Available

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Since the mid-1980s, Philips, one of the largest consumer electronics companies in the world had been witnessing losses in many of its fourteen divisions, including its core business – consumer electronics. Cheaper products from Japanese and Korean companies flooded Europe, which was the niche market for Philips. The 1990s were no different for Philips and it continued to reel under losses and stagnating growth.

Pedagogical Objectives:

  • To discuss how Philips, under CEO Gerard Kleisterlee with his 'towards one Philips' philosophy, has been able to recover itself and is preparing itself for a profitable future.

Keywords : Philips; Restructuring; Towards one Philips; Restructuring / Turnaround Strategies Case Study; Gerard Kleisterlee; Consumer electronics; Corporate strategy; Lets make thing better; DVD recorders; Compact disc; Strategic conversations; Recovery plan of Philips; Change at Philips; Sony; Semiconductors; Medical systems

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