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Marketing Case Study

2016 words - 9 pages

Marketing Case Study


Brief History of the Company

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 267.93 Million in 2007. With activities in the three interlocking domains of healthcare, lifestyle and technology and 161,500 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, colour television sets, electric shavers, lighting and silicon system solutions.

Products and service

In the Electronics segment, the Company is engaged in ...view middle of the document...

It manufactures and markets consumer electronic products such as televisions and home appliances. The company recorded revenues of approximately $90,551.2 million during the FY2006, an increase of 5.9% over FY2005. The operating profit of the company approximately $9,548.3 million during FY2006, an increase of 18.9% over FY2005. The net profit was approximately $8,401.7 million in FY2006, an increase of 3.7% over FY2005.

Sony Corporation

Sony Corporation engage in the development, design, manufacture, and sale of electronic equipment, instruments, and devices for consumer and industrial markets worldwide. Sony is a leading manufacturer of audio, video, game, communications, key device and information technology products for the consumer and professional markets. Sony recorded consolidated annual sales of approximately $70 billion for the fiscal year ended March 31, 2007.

Marketing Issues and Activities

Macro Environment Issues

Political and Legal

The country has seen political stability. The activities of business operation are eased when peace and stability of a country is ensured. Philips company business activities are subject to various governmental regulations in the different countries in which it operates, including regulations relating to business/investment approvals, trade affairs including customs, import and export control, competition and antitrust, intellectual property, consumer and business taxation, foreign exchange controls, personal information protection, product safety, labor, occupational health and environmental and recycling requirements.

Rising world demand for energy, business and factories in particular require significant amount of energy in the form of both electricty and petroleum-based fuels inorder to operate this increasement in demand is affects the cost.
The global economy was declining much faster and deeper than expected , as it abandoned profitable targets, sharply lower demand from consumers. The economy dowen turn is also impacting demand in consumer life style mature market sales decling because of portfolio pruning. Since philips is a global firms ,exchange rate movement can have a major effects on profitability and cost.

Social/ cultural

The Netherlands has seen a rise of migrants coming from other countries. It may provide attractive marketing opportunities.

The rising of proportion of people over the age of 45 in the Netherlands creates substantial maketing opportunities because of their higher per capital income.


The Internet is a major new technology affecting the business landscape. It is a distribution channel, a communications tool, a marketplace and an information system. It can alter the way in which the firm communicates with its customers and suppliers, the way in which it collects customer data, Sellers can reach more customers, gather better data, and communicate more effectively.

Technological advancement in...

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