Information on the External Environment.

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INFORMATION ON THE EXTERNAL ENVIRONMENT. The external environment is the ‘external context within which an organization exists and operates. We can identify the external environment of each company by determining their opportunities, threats, Porter’s five forces model, industry competition and competitor analysis. For the opportunities and threats, we can find them at each company SWOT analysis. Philips Electronics Opportunities 1. Mobile business. Philips Electronics Company have chance to enter in a mobile phone business because 70% of the material from IC to screens in Nokia mobile phones are from the Philips so they are thinking that why shouldn’t we start the mobile business. 2. Increasing demand for green lighting products due to a 40% energy savings capacity. Increasing demanding for green products gives overall profitability of the company. The demand growing significantly over the past few years due to a rise in fuel and energy prices, improves awareness and participation in green home certifications programs and through government support. Green products already represent a significant share of Philips revenues in all markets starting from 2009 until now. 3. Growing presence in healthcare and lighting segments in emerging markets. In the lighting segment, Philips is adopting customer centric approaches to meet consumers’ lighting needs. In China, 80 Philips branded lighting stores have been opened that uniquely address customer demand for energy efficient. In India, Philips has developed customer centric concept of light lounges, that offer consumers a unique ‘see, touch and feel’ experience. In addition, this light lounges is also partnering with retailers at shopping mall, on high streets and at stand alone locations to create a shop-in-shop sales outlets. In the healthcare segment, emerging markets are set to become the chronic

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