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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 go ballistic its mojo have failed. Will its attempt at repositioning its products at the youth work? This case study looks at what went accuse 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 fail came as no surprise. The five-year pact, under which Videocon is handling Philipss TV manufacturing, spreading 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 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 efficiently. It took th e 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 pin 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 vane will help the Philips brand reach more outlets and skip 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 Korea n 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 grapple with the Koreans on pricing, and thought the prize technology of its products, be it flick or sound quality, would hold out. We took a...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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