Strategy Of Philips Lighting In The Chinese Market

Lighting is the essential of men’s life, the development of artificial lighting is from campfire to candle, kerosene lamp etc, and in1879Thomas Alva Edison successfully developed a practical incandescent lamp by using carbon filament, which is a milestone that a century of electronic lighting started, since then many kind of electronic lighting source were developed for difference applications and brought great convenience to people’s everyday life.PHILIPS is one of the top companies with over100years of history in lighting industry, and it had been in China for over20years and is now the leader of China lighting market. With continues development of LED technology for lighting applications, it will create opportunities as well as challenges to the companies in lighting industry. It is valuable for both the company as well as business schools to research and uncover the strategy of PHILIPS being the leader of lighting industry which lead PHILIPS to transform&actively compete in the future at the point where the industry just started to transform.China lighting industry had been developed to be a huge market which is about70billion RMB in value size, and the growth is expected to be continued. With the fast development of LED technology&implementation on lighting applications, plus advantages over traditional lighting technology, LED is expected to be the mainstream of lighting market in2020. It is crucial for PHILIPS lighting to develop its business strategy which allows it to win in the future competition with deep understanding of further lighting market trends.This article used PEST model to analysis the macro environment and also used Michael Porter’s Five Forces Model to analysis the competition environment PHILIPS facing in China lighting market, base on above analysis to find out Opportunities and Threads to PHILIPS; by using Michael Porter’s Value Chain Model to analysis the internal Strength and Weakness of PHILIPS lighting China vs. competition to construct the SWOT model. Base on the SWOT model to further analysis the strategic direction and strategic objectives of PHILIPS lighting China and in the last how PHILIPS to secure the strategy to be well implemented.