iima cognito

7/31/2019 IIMA Cognito

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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


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


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

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