To prevent this self-fulfilling prophecy from becoming a reality, leaders need to reenergize people in these challenging times. They need to get people focused on a goal that helps them breakaway from this vicious cycle. Get them focused on the marketplace: the customers, the competitors and the industry. In my opinion Philips NV will have to find new ways of value and creation. In the future it won't be enough to offer just high quality products and good service. Therefore Philips NV is on the right track to connect the whole thing with their innovative products. This will give them a very high competitive advantage.
Furthermore it will be necessary to cut costs in order to make better offers. Otherwise the consumers are likely to switch to no name products which have equal technical standards. With their Structural Reform Program Philips NV is on the right track but it will have to make further, faster improvements in the resource sector. …
