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How did Philips become the leading consumer electronics company in the world

post war era?


What distinctive competencies did they build? What incompetancies did they
build?
Philips became the leading consumer in electronics because it was built upon two
foundational competencies. First, they created a culture that revolved around technical
innovation. This allowed them to sustain a prominent edge, via products and production
innovation, against their competition. They were known as the market leaders in industrial
research. Their dedication to their R&D enabled them to expand their product line
tremendously for the next 30 years. Second, they developed a strong market commercial
bias. This guaranteed that their innovations could be applied in the transforming
international marketplace. In the post war era, their ability for rapid national responsiveness
allowed them to develop powerful strategies to break through high barriers between national
markets. These two strategies were embedded in their organizational model, which in turn
became a source of sustainable competitive advantages for the firm.

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