Post on 04-Apr-2018
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BUSINESS PLAN
Philips - India
Business Proposal
By Team : Cognito
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Philips India
Proposed Growth Areas
Proposed Growth
Areas
Portable
Medical
Devices
LED
Lightning
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Portable Medical
Devices
Why Philips
should look to
consider
Philips India
Portable Medical Devices
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BUSINESS PLAN
Portable Medical Devices
Healthcare sector in India:
With a shift towards urban lifestyles, the incidences of diabetes, cancer, chronicheart diseases and hypertension in India have increased significantly.(SUSTAINABILITY)
Size of the Indian Healthcare Industry - US$35 billioncontributes over 5% of GDP
and the Medical Equipment market is $2 billion, growing at 15%
Health service in India are expected to grow at the compounded annual rate of 12-
15 % between 2012-2020 alone. (SCALABILITY)
The International Diabetes Federation estimates that the number of diabetic patientsin India more than doubled from 19 million in 1995 to 40.9 million in 2007. It is
projected to increase to 69.9 million by 2025.
There are over 10 crore people suffering from heart problems with one in everyeight males affected with it.
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BUSINESS PLAN
Portable Medical Devices
Market View for Portable Healthcare Devices:
To tap into this lucrative healthcare market, Philips should target consumerhealthcare devices.
The consumer devices need to be portable, easy to use and customer friendlyexample SMBG (Self Monitoring Blood Glucose).
In India a meagre 0.3 per cent of diabetics use SMBG as opposed to almost 22 percent in developed countries. Lack of awareness regarding complication of diabetesand benefits of regular monitoring are key factors for this.
The challenge is to educate the diabetes patient on the importance of frequentblood glucose testing in order to better manage their diabetes.
Attempts by health care professionals, insurance companies, and doctors is needed
to educate diabetes patients on the importance of portable devices .
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Entry In PortableDevice Market
Educatingpeople throughadvertisements
PartnershipsWith doctors
Bulk DealContracts
withHospitals
How to enter?
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USP of PortableDevices
Ease of Use
Brand ValueOf Philips
Low Cost
USBconnectivity
for report
sharing
Regularcheck ups
withconvenience
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LED Lighting
Why Philips
should look to
consider
Philips India
LED Lighting
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Megatrends
Population Growth Expected to increase to 1.23 billion
Rising per capita income in India - $4200 in 2020 (Average growth rate
of 13% in 2011-20)
Urbanization Usage of light is higher in Urban than Rural areas
o 35.4% in 2020 of total population from 31.8% in 2010
Energy conservation and global movement towards CO2 abatement
o Switching to LED lighting is economically more attractive than
other means of CO2 abatement (reducing vehicular emissions
or switching to solar power systems as cost is prohibitive in
both)
Value proposition of LED
Longer Lifetime (up to 25 years)
Compact Size
Flexibility in Design
Digital Control Programmability No ultraviolet/infrared emission
Safe to use because of no heat/low voltage
Since Indian consumers dont have a preference for warm light,
LEDs are at an advantage unlike European countries (Halogen
being preferred because it emits warm light)
Philips India
LED Lighting
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Philips India
LED Lighting
Why should Philips consider this growth area?
Residential The largest sector of the lighting industry
Office Indian corporate space is increasing at an exponential pace
Retail With FDI in retail expected, Indian retail sector is set to undergo a huge
transformation Low energy consumption Low heat generation Greater design flexibility Low maintenance segments
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Philips India
LED Lighting
Why should Philips consider this growth area? (contd..)
Hospitality Since high-end hospitality sector emphasizes light controllability to control mood,
LEDs can be promoted.
Outdoor Partner with the Government of India & State Governments to use LEDs in
streetlights emphasizing the low total cost of ownership over the long term
Entertainment The programmability of LEDs can be emphasized to increase the market share of
LEDs in India with a growing Film & Music industry
Industrial Since LEDs will have a lowest total cost of ownership over the long term,
industrial sector is likely to switch to LEDs
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Philips India
LED Lighting
How should Philips approach this growth area?
Residential Partner with the Government of India to electrify the rural sector using LEDs Partner with New Residential projects (increasing urbanization will create lot
of new real estate opportunities in India) Offices
Partner with new offices to encourage LEDs emphasizing the below values
Controllability Low total cost of ownership over the long term than substitutes Can be integrated with the fixtures pleasing to see
Partner with Government to electrify the public affiliated institutions Tamil Nadu and Karnataka have already banned incandescent lamps LEDs are environment-friendly and can be used for CO2 abatement Low total cost of ownership
Retail Negotiate contracts with retail chains Engage with real estate developers creating new shopping spaces
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Sustainability
By 2020, LEDs are expected to have a market share of 64% ofthe entire LED industry
Since the production methods are entirely different from CFL andincandescent lamps, it will lead to the emergence of an entirelynew industry
With strict environmental regulations, the governments are likelyto mandate the use of LEDs
With competitions such as the L Prize (Department of Energy,USA),breakthrough innovation in the industry is likely to furtheremerge
Scalability
Lighting accounts for 19% of the worlds electricityconsumption
Size of the lighting market is comparable to the size of the TV
market The market for LEDs is across geographies, markets and
covers many segments
Philips India
LED Lighting
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Thank You
Philips India