Philips - Lighting, Medical Equipment, Household Equipment

I) INTRODUCTION

Name: Philips

Founding: Gerard Philips in 1891

Business form: Joint Venture

Products: Lighting, Medical equipment, Household equipment.

Reputation/Review: Top 50 Best Global Green Brand, Energy Star Partner of the year, Top 100 Most Sustainable Corporations in the World, Red Dot Award: Product Design 2015 and a lot of award in many years.

Mission: Improve the quality of people’s lives through technology, enabled meaningful innovations as co-creator and strategic partner for the Philips businesses and complementary open innovation ecosystem participants.

I chose this company because it has no the official agent in Vietnam and technology and the effectiveness of Philips helped greatly to society, Vietnam is a developing country, the demand for electronic products of people growing including technologies lighting, medical equipment and prices of Philips products is consistent with Vietnamese

Executive Summary

The company Philips has its headquarters located in Amsterdam, Netherlands. The company specializes in producing lighting equipment family, public, health products health care, the electronic equipment in the family, machining of electronic components for other companies. Philips has strengths in lighting technology, electronic equipment famous family in the world. Vietnam is a developing country, the demand for lighting and home electronic equipment are rising up, so Philips need to join in Vietnam market to expand their company more, analyze the products that Philips intends to sell is appropriate for Vietnam market. In this article we will analyze the elements of political, economic, social, technological, geographical environment climate, the law of Vietnam when Philips engaged and competitors and products, their prices that Philips will facing with.

II) Country Analysis

Vietnam

Viet Nam is located on the Indochina peninsula in Southeast Asia. It has a long land border of 4,550 km, bordering China to the North, Laos and Cambodia to the West, and the Eastern Sea (South China Sea) of Pacific Ocean to the East. . The country’s total length is 1,650 km from the northernmost point to the southernmost point. Its width, from the Eastern coast to the Western border, is about 500 km at the widest part and about 50 km at the narrowest part. (Vietnamembassy)

III) PESTEL Model

PESTEL analysis is a helpful tool which is used to research on the new environment. However, it helps company to forestall difficulties in the future. As Kotler and Keller make clear, PESTEL represents for Political, Economic, Social, Technological, Environment and Legal.

Political

Vietnam gained independence in 1975 (Independent 2015) and has enjoyed nearly forty years of freedom with political stability. In 1986 Vietnam introduced Doi Moi (economic renovation) the key aim of this policy was to open Vietnam to foreign investment. Since 1997, other countries in the same South East Asia region with Vietnam (for example: Myanmar, Thailand) have gone through some major political crisis (BIS 2008).However, Vietnam still maintain political stability, this is a great advantage of Vietnam to attract investors and foreign companies in Vietnam. According to Vietnamembassy, political institutions in Vietnam only a single party which includes the Government, the National Assembly, Prime Minister, the President and the other government agencies in which the prime minister was the most powerful, also president water does not have much power.