Chapter 2.11This is a featured page

The only one, or the first


If you want to be successful: “Either you have to be able to create an image with the consumer that you are the best, the specialist. Or you have to be the first, with enough lead time over competitors to position yourself, or you need protection with patents.” (Han van Splunter)

That last strategy has not been pursued by Philips since the failure of Video 2000, and al technology is now made available to others. “Philips don’t go it alone anymore.”

“The success of iPod also shows it is related to the positioning of the company, and extravert management. But for an old company like Philips that is much harder to establish.”

“Philips will do a lot more niches.” The DAP business unit will grow its health and wellness products. “They will be amed at fit people to stay healthy. We’re not focused on sick people, but over time that will happen. The age groups over 30 have more money anyway, and seniors are an interesting market.”

Frans van Houten at IFA Berlin 2005. Philips had a problem that its speed of development was much too slow. When a panel became available, Philips would start designing a TV around it and by the time the product was ready for production, the panel was end of life (after 9 months or so). The LCD panel makers no longer wanted to supply it, because it had become too expensive. This happened as recently as 2003. The CE organization had to be reorganised so that design of a new product is now happening at the same time a new panel is being developed.

For chip manufacturers however, product development life cycles are still two years, he said. It needs to be sped up, but that’s a lot harder to do in semiconductors than in Consumer Electronics.

Nexperia is nearing 20 percent of sales, because it allows chips to be reprogrammed when features need to be added or changed. “When we first came out with it more than 5 years ago, people said it was to complicated and to expensive. Now they like it, because they can quickly change things, which you cannot do in dedicated chips.”

Panasonic has a black box strategy, which consists of patents and process and production technology, or a mix of both. The company has never had a innovation-driven organization. It’s always been known as a fast follower, rather than an innovator. The Japanese used to say Sony invents, Matsushita xxx.


Sharp, however, was founded in 1912 on a mission by its founder Tokuji Hayakawa to “make products that others will imitate” and has been at the forefront of television innovation, with japan’s first black and white TV set in 1953, the first calculator with an LCD screen in 1973, and it developed LCD into full colour television, overcoming difficulties such as pixel brightness, reponse time, size restrictions, life time. It is leading with 3D TV and dual view screens that can display two different images when watched from different angles – useful in cars.

Continue with Chapter 2.12 here



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