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In: Economics

How strategically necessary were the acquisitions Philips Medical Systems made between 1998 and 2001?

Philips Medical Systems in 2005 (HBS 9-706-488)

  1. How strategically necessary were the acquisitions Philips Medical Systems made between 1998 and 2001? Should they have made the commitment to medical systems that they did?

2. Compare Philips Medical Systems with GE Healthcare and Siemens Medical Solutions in terms of the amount of leverage it has managed to create for itself vis-à-vis each of the AAA strategies.

3. How might Philips Medical Systems significantly improve its position? In particular, should it focus on creating a competitive advantage for itself around a subset of the AAA strategies and if so, which one(s)? Should they apply the “one, two, or out” rule if unable improve their position significantly?

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