IMD-5-0730 © 2007
Meehan; Sean
In 2001 Gerald Kleisterlee took over as CEO of Philips amid a fiscal disaster. The firm was about to post its worst ever losses and was being seen by many as a candidate for takeover or breakup. Kliesterlee engages in a process for reformulating its strategy from being a conglomerate story to be a high increase electronics play and reestablishing precedence for Philips. He knows the company has to be more externally focussed and decides to hire a Chief Marketing Officer; Andrea Ragnetti; to provide the impetus.
The (A) case concludes by providing the questions: What should be Ragnetti’s initial strategy and priorities? The (B) case describes the key initiatives launched and driven by the Ragnetti also as all the other actions going on that support the new pondering on being market-oriented. Having established a research validated justification for a new positioning; some Divisional heads oppose the strategy on the basis of cost and allocations thereof. The (B) case ends by asking what Kleisterlee should do. Learning objectives: To better understand the best way to create the conditions for outside-in transformation of a complex corporation and to recognize the bridge brand and customer penetrations play in linking the customer to the corporation.
Philips Marketing Journey (B) case study solution
Subjects: Positioning; Brand; Customer focus; Change; Leadership Settings: Global; Electronics; € 30 billion approx.; 2002-2007
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