Philips SWOT Analysis

Published in Conglomerates category by MBA Skool Team

Here is a detailed SWOT analysis of Philips covering strengths, weaknesses, opportunities and threats.

Philips Strengths

  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 acrossthe 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

Above are the strengths in the SWOT Analysis of Philips. The strengths of Philips looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Philips Weaknesses

  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

These were the weaknesses in the Philips SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Philips Opportunities

  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

Above we covered the opportunities in Philips SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Philips Threats

  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

The threats in the SWOT Analysis of Philips are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Philips SWOT analysis.

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About Philips

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Philips Overview
Parent Company

Koninklijke Philips Electronics N.V.

Category

Lifestyle and well-being

Sector

Conglomerates

Tagline/ Slogan

Sense and simplicity

USP

Improving people’s life through meaningful innovation

Philips STP
Segmentation

Consumer lifestyle, healthcare and lighting

Target Market

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;

Positioning

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 along with Segmentation, Target Market, Positioning & USP of more than 2000 brands from over 20 industry sectors.

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