In January 2012 I blogged about Philips that it “is revising its strategy to focus on new products in new markets. It is moving away from products related to sound and vision, such as televisions and stereo systems, towards gadgets that help customers monitor and manage their wellbeing”. A look at their website confirms that this shift has continued. They identify seven product areas:
- sound and vision
- personal care
- mother and child care
- household products
- lighting personal health
- PC products, tablets and phones
By 2016, 40% of their business was “medical equipment”. They no longer manufactured tv sets, and were thinking of selling off their lighting business. By focusing more on advanced lighting and medical technology, profit margins are stronger and less vulnerable to competition from emerging markets.