Lighting Up Philips' Asian Entertainment Activities (B)

Description

The case illustrates how Philips’ new venture integration team applies a new capability, captured in the “sales integration approach” (SIA), to organically grow its Asian Professional Lighting Entertainment activities. The capability, designed for acquisition integration, has previously helped realize substantial growth (or sales) synergies in a recent acquisition. The main challenge is to understand how to apply the SIA to realize organic (instead of acquisitive) growth (i.e., internal development). This case can be used with Philips-Indal: The Deal from Heaven? (A) 9B14M018.

Learning Objective

This case is suitable for both management and MBA students, as well as business managers and executives involved in internal development/organic growth or acquisition activities. It is best used in courses on international management, (global) strategy and strategic marketing. The main objective of this case is to give students insights into how Philips aims to realize organic growth (or internal development). A proven acquisition-integration capability for sales synergies is used to develop Philips’ Asian Entertainment business. Students will be challenged to identify differences and similarities in how Philips grows through acquisitions and realizes internal development. In this case, students have to use the SIA to develop a strategy for Philips’ Theatre segment in the Asian entertainment industry. Moreover, students are challenged to think through the links between corporate and business-level strategy.

Keywords

Asia China Europe new venture integration Organic growth Post-acquisition growth