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 a figure of 267.93 million euros in 2007. With activities in the three interrelated areas of health, lifestyle and technology and with 161,500 employees in more than 60 countries, it occupies positions of market leader in medical diagnostic imaging and patient monitoring, color televisions, electric shavers, lighting solutions and silicon systems. 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. And its products are marketed by commercial subsidiaries and unaffiliated local distributors and sold directly via the Internet worldwide. a) Nature of Electronics Industry Today's electronics industry faces many design and manufacturing challenges across 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 the commoditization driven by the highly competitive electronic environment. .Financial performanceThe company manufactures medical systems, consumer electronics, lighting products and semiconductors. The company recorded a turnover of 26,793 million euros during the 2007 financial year, an increase of 0.4% compared to the 2006 financial year. and 976 million euros during the financial year ended December 2006, an increase of 4.7% compared to 2005. The company's operating profit amounted to 1,852 million euros during the 2007 financial year, an increase by 5.4% compared to fiscal year 2006. Net profit amounted to 4,168 million euros for fiscal year 2007, a decrease of 22.6% compared to fiscal year 2006. CompetitorsSamsung Electronics CompanySamsung Electronics Company, part of the Samsung Group, is one of the world's leading consumer electronics brands. It manufactures and markets consumer electronics products such as televisions and household appliances. The company reported revenue of approximately $90,551.2 million in fiscal 2006, an increase of 5.9% over fiscal 2005. The company's operating profit company is approximately $9,548.3 million in fiscal 2006, an increase of 18.9% over fiscal 2005. Net income was approximately $8,401.