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Executive Summary: Once a household name, Dutch consumer electronics major Philips has slipped over the years to become an also ran. Its repeated attempts to hit the roof its mojo have failed. Will its attempt at repositioning its products at the youth work? This case study looks at what went disparage and what the company needs to do in order to succeed.  In April 2010, when Philips Electronics India Ltd announced its plan to outsource its TV lineage toVideocon Industries, the run low came as no surprise. The five-year pact, under which Videocon is handling Philipss TV manufacturing, public exposure and sales in India, is aimed at restoring the profitability of the TV agate line. Philips was at once a dominant player in the segment, with a foodstuff share of around 15 per cent in the archaeozoic mid-nineties, alone business eroded as Korean and Indian daubs grabbed grocery share. As volumes fell, the company struggled to run its TV grinder in Pune efficien tly. It took the third-party route to manufacture CRTs and imported liquid crystal display screens, but this didnt help. Then the company licensed the unit to Videocon. The hurry of Philipss consumer business - especially TV - began in late 1990s Through the arrangement, Philips leave behind get royalty income found on turnover.

Videocons economies of scale in manufacturing and its strong distribution web will help the Philips brand reach more outlets and press the cost per unit. The downfall of Philipss consumer business - especially TV - began in late 1990s. The reasons were beyond the insure of the management. The entry of Ko rean chaebols such(prenominal) as Samsung ! and LG started eating into the market share of older players such as Onida, Videocon and Philips. Philips decided to pegleg to its usual strategy: relying on technology rather than alter distribution and marketing. It didnt want to struggle with the Koreans on pricing, and thought the prize technology of its products, be it icon or sound quality, would hold out. We took a...If you want to get a full essay, order it on our website: BestEssayCheap.com

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