chapter  4.6
Case study: Philips
Diversification strategy in practice
ByMario Glowik
Pages 9

This chapter explains a case study of Philips to provide practical insights into the art of thriving as a global business. Koninklijke Philips N. V., headquartered in Amsterdam, is the parent company of Philips Group and was founded in 1891 by Frederik Philips and his son Gerard Philips, who established an electric incandescent light bulbs factory named Philips & Co. in Eindhoven, The Netherlands. In 1918, Philips introduced a medical X-ray tube and gained international recognition by founding sale organizations abroad in countries such as Brazil, Australia, and China. During the 1980s, Philips launched its compact disc. In 2011, Philips was engaged in three main sectors: lighting, consumer lifestyle, and healthcare. In 2014, Philips entered into a joint venture and invested 51 percent of General Lighting Company (GLC), a major lighting company in the Kingdom of Saudi Arabia. Since 2015, Philips's activities are segmented in divisional business divisions. The main divisions are Healthcare, Consumer Lifestyle, Lighting and Innovation, Group and Services.