Philips – a Dutch Multinational company, is one of the largest Electrical and Electronics company in the world. Philips is present in over 60 countries and employs more than 100,000 people. Philips is famous for its products in areas of Sound & Vision, Personal Care, Mother & Childcare, Household Products, Lighting and Automotive systems.
Initial Hiccup then a Giant Leap:
Philips was started by Gerard Philips and his father Frederik Philips in 1891 at Eindhoven, Netherlands with an aim of producing carbon-filament lamps. Initial years were very tough and Philips stared at bankruptcy in 1895 due to lesser domestic demand.
Anton Philips younger brother of Gerard Philips joined the company and started to concentrate on the company's sales more seriously – with an eye on the export market, especially in European and Russian market. This leap of thought to concentrate on export market paid off successfully and in 1912 Philips became a limited company.
Innovation for People:
In 1914, Philips established its research laboratory 'Nat Lab' and introduced medical X-ray tubes in 1916. Philips expanded its research from radiation to radio reception, recording, transmission and reproduction of television pictures. In 1963, Philips introduced Compact Audio Cassette – this changed and captured world's tape recording market completely.
Philips never sat on its laurel and relaxed, it continued its research more vigorously to help people in their life by keeping it simple. It came up with more innovative products like Philips Synchrocyclotron for treating the malignant tumor, Rotary Shavers, Optical Telecommunication systems, LaserVision optical discs, CDs, DVDs, 3D Scanners etc. In all these product innovations, people's necessity is at the centre of its innovation.
Diversification and Partnerships:
Philips never hesitated to diversify its business area. When the breakthrough in lighting systems (X-ray tubes) happened it diversified into healthcare. It successfully diversified into electronics (Radio, Compact Audio Cassette and Compact Disc) when it got breakthrough in radio and optical systems. Philips partnered with other companies primarily based on innovation, by partnering with Sony it successfully came up with CD and DVD. Diversification into new areas and partnering with other companies helped Philips to provide solutions for different needs of people and conquer new markets.
The Lesson:
Philips past tag line “Sense and Simplicity” and the current tag line “Innovation and You” is ingrained in each of its businesses. Philips keeps end consumer's needs in each of its product innovation. Philips Lighting's product series like Philips My Living, Philips Clean Room, Philips My Wall, Philips My Ceiling, Philips My Bathroom, Philips Table Lamps, Philips My Garden, Philips LED, Philips CFL, Philips Hue Dimmers etc. are introduced by Philips Lighting - keeping different lighting needs of customers for different room types (areas). Philips Hue Series is one step further, the customer can change the lighting's colour based on their mood/choice/preference.
Philips is successful because of its people - centric approach in Product Innovation and its continuous focus to make People's life simple.