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“The reality we’re facing now is that there is no ‘one size fits all’ approach to our business. We have to be innovative throughout the entire value chain.” Rudy Provoost, CEO Philips in Mondial August 2005.

CRT tvs have entered the end of their life cycle, and manufacturing is outsourced.

“A few years ago we were a vertically integrated company like Sony and Samsung. De-verticilisation is giving us the flexibility and agility to respond rapidly to changing market cisrcumstances and market dynamics.”

“(But) We need to do more than de-risk and de-verticalise. The sustainability of our future success ultimately depends on our ability to develop differentiated business models that allow us to compete with different types of competitors in different stages of the product life cycle and in different environments.”

“Products late in their life cycle, such as traditional audio and CRT TV, need a lean, mean, velocity-based model. The faster they move through the chain the more effectively you deal with price erosion. (But) Innovative, value-added categories like CINEOS Ambilight TVs require a customized, full-service approach to the business that creates maximum value.”


Conclusion:


Intel’s Andy Grove famously titled his book “Only the paranoid survive”. Les Fides, Intel employee No. 3, told Research In Motion co-CEO Jim Balsillie: ‘I don’t believe in end games.’ “This was from a company with over 80 percent marke share at the peak of its power. If he doesn’t get to declare end games, nobody can.” (Balsillie said on Feb 15-2005).

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