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Main case New 2022/2023

The Strategic Transformation of Royal Philips

By Freek Vermeulen, Ronald de Jong


In April 2011, Dutch multinational Royal Philips, one of the most iconic companies in the country, decided to disrupt itself and transform from a diversified industrial conglomerate to a focused player in Health Technology. The case describes the first decade (2011-2021) of the strategic transformation in terms of refocusing the business portfolio, the new business model and, most of all, the efforts of top management to transform Philips’ internal organisation in terms of structure, culture and systems.
The first case author was a member of the executive board of Philips during the entire decade, working closely with the CEO, Frans van Houten, to effect the huge transformation. In addition to the author’s personal experience as a senior executive with the firm, the case is based on numerous interviews with other members of the executive board, including van Houten.

Learning objectives

  1. Illustrate how to change the internal organisation of the firm in terms of structure, culture, and formal and informal processes.
  2. Understand strategic transformation and business-portfolio restructuring in a multinational firm.
  3. Demonstrate how disruption, innovation and entrepreneurship can be carried out in a large and diverse organisation.
  4. Understand transformation of company culture and leadership.


Publication Date: October 2022
LBS Case Code: CS-21-011
Subjects: , , , ,
Geography: , ,
Pages: 24
Format: pdf