Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Philips analyses the brand by its strengths, weaknesses, opportunities & threats. In Philips SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Philips to benchmark its business & performance as compared to the competitors. Philips is one of the leading brands in the conglomerates sector.
The article below lists the Philips SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Philips SWOT Analysis:
For Philips, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Philips looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Philips :
1. Subsidiaries in more than 100 countries with more than 120,000 employees 2. Operates around 110+ production facilities
3. Has a very strong R&D portfolio, with 7 active R&D centers across the globe
4. Market leadership and strong brand equity - market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions with consistent growth rate in emerging market
5. Aligning operations with market conditions to increase productivity - Philips focused on de-layering its management structure to increase speed of execution and lower operating costs, resulted in improvement in efficiency
6. Customer loyalty is high for consumer electronics made by Phillips
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Philips SWOT Analysis:
1. Legal tangles tarnish brand image – With over 50 class action anti-trust complaints resulting in investigation against Philips like Lite-on digital solution, CRT division 2. Highly competitive market in electronic appliances from both local and international brands 3.Higher price quotient compared to competitors
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Philips SWOT Analysis:
1. Growth through the inorganic route is key to Philips 2. Increasing demand for sustainable and green lighting products 3. Growing presence in emerging markets like India and China
4. Push from various government and environmental activists for greener products indirectly promoting the products of Philips
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Philips are as mentioned:
1. Highly competitive business environment 2. Counterfeit goods - a major threat to manufacturers of branded electronics 3. Environmental and other government regulations
4. Exchange rate fluctuations
5. Availability of cheaper technology in local markets
There are several brands in the market which are competing for the same set of customers. Below are the top 5 competitors of Philips:
Improving people’s life through meaningful innovation
Consumer lifestyle, healthcare and lighting
Users of domestic appliances like TV, video games; Users of kitchen appliances; healthcare industry users of imaging systems, patient care and clinical informatics; Industry and domestic users of light;
Trusted brand committed to quality and innovation
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse marketing analysis of more brands and companies similar to Philips. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors.
The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. The companies are not associated with MBA Skool in any way. Edit the brand or add a new one to SWOT Analysis section : Contribute