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Philips As A Multinational Companies In The Philips

Decent Essays
To become a leading consumer electronics company in the post-war era, Philips implemented the strategy of a multinational company from early on, and also benefited from proficient leaders, Gerard and Anton. Philips managed to gain successes through becoming a multinational enterprise, evident through various characteristics of a multinational enterprise. Other strategies included a decentralised organisational system, and their technical and innovative capability. When Philips first began their business in 1892, their only product was the light bulb. Instead of diversifying, Philips main focus lay only with the light bulb and as a result, were able to specialise and create significant innovations in this department. As their products began to gain success and a strong reputation, sales increased dramatically and Philips’ research and development sector continued to grow. In fact, Philips became a leader in industrial research, an attribute that would continue to benefit them as the company continued its global leadership in the post-war era. It was evident that Philips was aware of the importance of globalising their company in the post-war era, coupled with the small domestic market, and in 1912, the company began to internationalise, resulting in becoming a multinational enterprise. Some of the main features that suggest this is that they had multiple operating environments, global competitive game, and organisational complexity and diversity. Before the anticipated
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