Philips to regroup units into one consumer electronics division
December 18, 1997
AMSTERDAM, NETHERLANDS - AP World News via Individual Inc. : Dutch
electronics giant Philips on Wednesday unveiled part of its long-term plans for a
sweeping reform of its electronics operations.
- The company will regroup its so-called high volume electronics operations, including
Sound and Vision, Business Electronics and Consumer Communications units, into a
new division called Consumer Electronics from Jan. 1.
- The new group will focus on meeting consumer needs better, coupled to a clear
emphasis on growth and shareholder value, said Jan Oosterveld, senior director of
corporate strategy in Philips' internal magazine Mondial.
- Oosterveld said the group is targeting market share of 10 percent.
- ''Philips is like a big hungry animal that needs feeding more and more. If we don't do
this, we'll have constant restructuring which is unpleasant and costly,'' Oosterveld said.
- One of the main reasons behind the move is that high volume electronics can no longer
be treated as a separate segment, said Oosterveld.
- The other Business Electronics, including industrial electronics and machine factories,
will be grouped together under new management, Oosterveld said.
- A much-heralded long-term strategy for the entire company will not be announced
until early 1998. No decision about the group's product portfolio is expected before that
date.
[Copyright 1997, Associated Press]
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