Philips 2009 Annual Report Download - page 12

1.2 Our strategic focus
Philips is a global company which delivers meaningful
innovations that improve people’s health and well-being.
Our health and well-being focus extends beyond our
products and services to include the way we work:
engaging our employees; focusing our social investment in
communities on education in energy efficiency and healthy
lifestyles; reducing the environmental impact of our
products and processes; and driving sustainability
throughout our supply chain.
Our health and well-being offering is powered by our
three sectors: Healthcare, Consumer Lifestyle and
Lighting.
Meeting people’s needs with “sense and
simplicity”
People’s needs form the starting point for everything we
do. By tracking trends in society and obtaining
fundamental insights into the issues people face in their
daily lives, we are able to identify opportunities for
innovative solutions that meet their needs and aspirations.
Our “sense and simplicity” brand promise expresses a
commitment to put people at the center of our thinking,
to eliminate unnecessary complexity and to deliver the
meaningful benefits of technology. Our adoption of Net
Promoter Score (NPS), which measures people’s
willingness to recommend a company/product to a friend
or colleague, shows how we are doing in this respect.
Capturing value in mature and emerging
markets
Despite the global financial and economic crisis, we still
see enormous potential in both mature and emerging
markets, and we apply our competence in marketing,
design and innovation to capture value from major
economic, social and demographic trends.
These include the need of a growing and longer-living
population for more and affordable healthcare, the
demand for energy-efficient solutions to help combat
climate change and promote sustainable development, the
emergence of empowered consumers with high health
and well-being aspirations, and, last but not least, the
growing importance of emerging markets in the world
economy.
We have a long-established presence, strong brand equity
and large workforce in the emerging economies. This
gives us the home-grown insights needed to produce
sustainable solutions that meet the needs of local people.
We already realize one-third of our sales in the emerging
markets, and this figure could conceivably rise to around
50% by the middle of this decade. In order to capture the
growth opportunities that are available, we continue to
invest in building our local organizations, competencies
and resources in these markets.
The current economic crisis is likely to have the effect of
accelerating the fundamental trends outlined above,
increasing demand for healthcare (especially outside the
hospital), a healthy lifestyle and energy-efficient high-
quality lighting.
Building the leading company in Health and
Well-being
Delivering on our promise of “sense and simplicity”, our
sectors deliver solutions that create value for our
customers – healthcare and lighting professionals and end-
consumers.
People-focused, healthcare simplified
In Healthcare, we are building businesses with strong
leadership positions in both professional and home
healthcare, as well as a growing presence in emerging
markets. We simplify healthcare by focusing on the people
in the care cycle – patients and care providers – rather
than technologies or products. By combining human
insights and clinical expertise, we deliver innovative
solutions that help improve patient outcomes while
lowering the financial burden on the healthcare system.
Enabling people to enjoy a healthy lifestyle
The pursuit of personal well-being is a universal trend,
equally relevant in mature and emerging markets. With a
strong market-driven, insight-led culture, coupled with
technological expertise and excellent design, Consumer
Lifestyle focuses on innovative lifestyle solutions that
enhance consumers’ sense of personal well-being. With
simplicity providing our competitive edge, we continue to
build upon existing market-leading positions based on
differentiation and profitability rather than scale, as well as
entering new value spaces.
Simply enhancing life with light
Supported by the growing demand for energy-saving
solutions and the structural shift toward solid-state
lighting, our Lighting sector is strengthening its global
leadership in fast-growing areas, such as LEDs and energy-
efficient lighting, by driving the transition from products
1 Who we are 1.2 - 1.2
12 Philips Annual Report 2009