Mr. G. Kannan, in an informative session with the students of TAPMI, spoke about the need for realignment of the “Go To Market Strategy” of companies and the challenges associated with it.
He started the session by introducing different aspects of a company by taking Philips as an example. Philips is the market leader in lighting. The turnover of Philips is greater than the total turnover of the companies in the second, third and fourth positions in the market. The sales volume stands at 25cr bulbs per month. Market leaders have a wide market reach and the highest market share in the particular product. Considering the brand funnel, the awareness score for Philips is 97%. One of the factors that drives market leaders to success is their Go To Market Strategy.
The Go To Market Strategy consists of understanding the market, building market strategy and finally, implementing the execution. Industries and companies often get hit by technological and market disruptions. These disruptions affect market leaders the most as they have a large market to lose. Core business is impacted. However, they also create opportunities for the company to venture into new businesses and models. It brings about the need for realignment of the company’s Go To Market Strategy.
Mr. Kannan stated that the biggest disruption Philips was hit by was the advent of the LED technology. With the entry of LED bulbs which have an average life of 10 years, the market for the 6 months lifetime Philips bulb was in jeopardy. Evidently, it was time for Philips to make strategic changes. He explained that for a 125 year old company, the biggest challenge faced by its executives was to unlearn their best practices that may not be applicable for the new market strategy.
He concluded by explaining how Philips used these disruptions as an opportunity. By making strategic choices and redefining ‘Where to play’, ‘How to win’ and the ‘Delivery Process’, Philips rose to the challenge of the demands of a disruptive and ever changing market scenario.