Marketing Case StudyIntroductionBrief Company HistoryRoyal Philips Electronics of the Netherlands is one of the largest electronics companies in the world and the largest in Europe, with sales of 267.93 million euros in 2007. With operations in the three interconnected sectors of healthcare, lifestyle and technology and 161,500 employees in more than 60 countries, it holds market leadership positions in medical diagnostic imaging and patient monitoring, color televisions, electric razors, lighting and silicon system solutions. Products and Services In the Electronics segment, the Company is engaged in the development, design, manufacture and sale of various types of electronic equipment, instruments and devices for the consumer and professional markets. Additionally, its products are marketed by local unaffiliated sales subsidiaries and distributors and sold through direct Internet sales worldwide.a) Nature of the Electronics Industry Today's electronics industry faces numerous design and manufacturing challenges in a Wide range of applications and industries due to the complexity of electronic devices. These challenges include a continued demand for product innovation to counter commoditization driven by the highly competitive electronic environment. .Financial PerformanceThe company produces medical systems, consumer electronics, lighting products and semiconductors. The company reported revenues of 26,793 million euros during fiscal 2007, an increase of 0.4 percent compared to fiscal 2006. and 976 million euros during the fiscal year ended December 2006, an increase by 4.7% compared to 2005. The company's operating profit was 1,852 million euros during fiscal year 2007, an increase of 5.4% compared to fiscal year 2006. Net profit was of 4,168 million in fiscal 2007, down 22.6% from fiscal 2006.CompetitorsSamsung Electronics CompanySamsung Electronics Company, a part of the Samsung Group, is one of the leading consumer electronics brands in the world. It produces and markets consumer electronic products such as televisions and household appliances. The company reported revenues of approximately $90,551.2 million during fiscal 2006, an increase of 5.9 percent over fiscal 2005. The company's operating income was approximately $9,548.3 million dollars during fiscal 2006, an increase of 18.9 percent over fiscal 2005. Net income was approximately $8,401.