PHILPS Century (three): survival strategies in the first half century

In November 11, 1918, the British Daily Telegraph headline: the end of World War I.

Almost got patent lawsuit to gray PHILPS, finally escape from death in a great catastrophe at the Amsterdam stock exchange in 1912. In order to make the company more competitive in the market, Anton and Gerard decided to abandon the philosophy of the second child, abandoned the production of independent research and development to set up a specialized research laboratory of physics and Chemistry - NatLab. The decision to allow PHILPS to make a fortune during the first World War, the largest lighting company in europe.

End of war

At the end of World War I, the long-awaited peace came, but Europe was never the same again. In 1919, the human race has just experienced a terrible slaughter, the so-called human nature, National Trust, in this war gone.

Before the war, trade barriers between countries in Europe is very low, frequent international trade, no tariff; after the war, the European countries in order to restore power, respite, establish high tariffs, import restrictions, in order to protect the restoration of domestic enterprises.

This policy for the beginning of the business to international trade as the main market for PHILPS, is undoubtedly a major blow. Fortunately, at the beginning of the war, PHILPS in order to ensure the supply of raw materials for the production of light bulbs, in Holland, the territory of the filament and glass factory. This rainy day strategy allows companies to get a break in the post-war tariff barrier policy - PHILPS does not need to import raw materials, can be completed in the territory of all manufacturing.

Nevertheless, in order to break the trade restrictions caused by high tariffs, Anton led PHILPS out of Holland, europe. In order to circumvent the tariff, one after another foreign branches in the European countries, the implementation of local procurement, local production policy, which is the first large-scale expansion of PHILPS.

The war not only changed the situation, but also changed everyone, including Anton PHILPS. Before the war, although he is a powerful businessman, but acted honorably (even steal steal; also work in just ways after the war), he became obsessed with machiavellian.

Marshall, a business historian in Holland, wrote in his biography of Anton Metze (Marcel):

"Anton in the post-war changed his style: the European situation is still a bureau of changeable, Anton begins with a double agent dealing, using a trick -- even if the other is his intimate partners, and even the staff at ease. He conducted a number of private malicious mergers and acquisitions, making PHILPS in early twentieth Century to expand rapidly. "

As mentioned earlier, postwar Europe is an insidious, full of distrust, and government officials for the revitalization of the national economy, to raise tariffs is an agent that quickly see the medicine effect; and consolidate the regime for populist, against foreign enterprises can make the national morale high. In this era, master life nearly 10000 meter Anton PHILPS, is no longer that twenty years ago, carrying luggage came to an Hefen lighting factory that teenagers.

Fight both with open and secret means

After the war, PHILPS's old rival in Europe: Germany's SIEMENS and AEG comeback. By virtue of the inherent patents, technology, and German nationality this strict in demands, several German lighting companies recover quickly; on the other hand, Holland PHILPS is through the war on Germany outside the European market penetration, achieved a relatively favorable position.

In 1922, Gerard PHILPS retired, Anton officially became the CEO of the group. PHILPS from the father and son of three people of the era of governance, Anton became a man in power. The energetic Holland businessman, intends to PHILPS into a world-class electronics company.

In 1924, three German electronic companies: AEG, SIEMENS, Auer, to cooperation and solidarity against the past little brother PHILPS. Three companies will each of the lighting department cut out from the group, integrated into a new light bulb company: that is, the world's five leading lighting OSRAM (OSRAM).

At this time, Japan's Toshiba (Toshiba), but the two small electronics company still no climate has not yet merged; we can say that, at night, the light of the world, are the three giants to control: the American General Electric (GE), Holland PHILPS, and OSRAM of germany.

PHILPS Museum, Gerard Philip created by the bulb (source: PHILPS Instagram)

Seeing a fierce competition and will start lighting: consumers expected to have better light bulbs, cheaper price, light coming from this night no longer leave - but the war broke out, it quietly ended at the end of 1924.

With the progress of technology, the life of the bulb is longer and longer, from 1000 hours before the start of the war, in 1924 to reach 2500 hours, will soon break through the 4000 hours, 5000 hours. This is the most reluctant to face the nightmare of the light bulb, long life light bulb will no longer be able to do business. In 1924, a troubled winter night, Anton received a letter from Germany, he smiled.

That's OSRAM's truce.

Freeze freeze

Led by general electric, PHILPS, OSRAM led the seven bulbs