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Table of Contents
I. Introduction ........................................................................................................................ 3
II. Data collection methods and sources: ............................................................................... 3
III. Background of the Company: ......................................................................................... 5
1) Brief History: ................................................................................................................... 5
2) Overview of Products and Services: ............................................................................... 6
3) Customer Base and Target Market:................................................................................. 6
4) Market Share:.................................................................................................................. 7
IV. Discussion on selected B2B product: Philips IntelliVue Patient Monitoring System ...... 7
1) Overview of Philips IntelliVue Patient Monitoring System ............................................. 7
2) Customer Segments ........................................................................................................ 8
3) Target Market .................................................................................................................. 8
V. Framework analysis on selected B2B product .................................................................... 9
1) SWOT Analysis: ................................................................................................................ 9
2) Porter's Five Forces Analysis: ........................................................................................10
3) Marketing Mix Framework:...........................................................................................10
VI. Servitization Strategies: ................................................................................................12
1) Use-Oriented Servitization Strategy: ............................................................................12
2) Result-Oriented Servitization Strategy: .........................................................................13
VII. Marketing Strategy for the new Service (Servitization) ................................................14
1) GO-TO MARKET STRATEGY ............................................................................................14
VIII. Conclusion .....................................................................................................................15
IX. References .....................................................................................................................17
I. Introduction
In an era marked by rapid technological advancements and shifting healthcare paradigms, the
role of innovative solutions in revolutionizing patient care and clinical practice has never
been more pronounced. This introductory chapter serves as a gateway to our exploration of
the transformative potential of the Philips IntelliVue Patient Monitoring System within the
The rationale behind our selection of Philips and its IntelliVue system for analysis is
grounded in the company's distinguished legacy as a pioneer in healthcare technology and the
models. As healthcare systems worldwide grapple with challenges such as rising patient
acuity, escalating healthcare costs, and the demand for personalized, patient-centric care, the
IntelliVue system emerges as a beacon of innovation, offering advanced capabilities for real-
time patient data monitoring, clinical decision support, and remote health management.
Against this backdrop, our report aims to delve deep into the intricacies of the IntelliVue
system, elucidating its features, functionalities, and strategic implications for healthcare
encompassing SWOT analysis, Porter's Five Forces analysis, and examination of the
marketing mix, we endeavor to unearth actionable insights that can inform strategic decision-
Structured to provide a comprehensive overview of the IntelliVue system and its broader
implications, this report is organized into distinct chapters that sequentially unravel the
intricacies of our analysis. From the historical trajectory of Philips as a company to the
strategic imperatives driving the adoption of servitization strategies in the B2B product
market, each chapter serves as a building block in our quest to illuminate the
transformative potential of the IntelliVue system and the strategic imperatives shaping the
The data collection methods that we used in the process of preparing this report are:
unstructured.
detailed in its company reports. The company's website, annual reports, and other
Publications from the Government: Publications from the Government offer data on a
Libraries and official websites are good places to find these publications.
Internet Resources: social media, blogs, and news articles are a few examples of
online resources that can offer insightful information on a particular subject. But it's
and can be an invaluable resource for information needed for a report. Online
1) Brief History:
Philips, founded in 1891 by Gerard Philips and his father Frederik, initially focused on
manufacturing carbon-filament lamps. The company quickly expanded its product line to
include other electrical appliances. By the early 20th century, Philips had established itself as
In the 1920s and 1930s, Philips expanded its operations internationally, setting up
subsidiaries in various countries. During World War II, the company's factories in the
Netherlands were heavily damaged, but it managed to rebuild and resume production after
the war.
In the post-war period, Philips diversified its product range, venturing into consumer
electronics such as radios and televisions. The company also played a significant role in the
development of new technologies, including the Compact Cassette and the Compact Disc.
Throughout the latter half of the 20th century, Philips continued to innovate and expand into
new markets. It established a strong presence in the healthcare sector, developing medical
In the 21st century, Philips underwent a series of strategic transformations, focusing more on
healthcare technology, consumer lifestyle products, and lighting solutions. The company sold
Today, Philips is a diversified health and well-being company, with a focus on healthcare
technology, consumer products, and lighting solutions. It remains one of the world's leading
innovators in these fields, committed to improving people's lives through its innovative
lighting solutions for homes, businesses, and public spaces. This includes LED
professional lighting solutions for industries and infrastructure, and connected home
technology.
facilities are key customers for Philips Healthcare division. These institutions rely on
Philips' medical devices and solutions to provide quality patient care and improve
clinical outcomes.
retail stores, offices, factories, sports stadiums, and public infrastructure projects.
4) Market Share:
In the healthcare sector, Philips holds a significant market share in various segments,
customer-centric solutions have solidified its position as a leading technology company with
a strong presence in healthcare, consumer electronics, and lighting sectors. With a relentless
commitment to research and development, Philips continues to drive innovation and shape
System
patient care and clinical outcomes. The system allows healthcare professionals to remotely
monitor various vital signs and physiological parameters of patients, such as heart rate, blood
2) Customer Segments
The primary customer segments for the Philips IntelliVue Patient Monitoring System include:
Hospitals and Healthcare Facilities: The system caters to hospitals, clinics, and
healthcare facilities of all sizes, ranging from small outpatient clinics to large tertiary
care hospitals.
require accurate and timely patient data for clinical decision-making are key users of
healthcare services, the IntelliVue system also targets home healthcare providers who
3) Target Market
The target market for the Philips IntelliVue Patient Monitoring System includes:
Acute Care Settings: Hospitals and intensive care units where continuous monitoring
admission.
Home Healthcare: Remote monitoring solutions for patients receiving care at home.
We use three major frameworks in this chapter to conduct a thorough analysis of the chosen
B2B product in the healthcare industry: the Porter's Five Forces analysis, the SWOT analysis,
1) SWOT Analysis :
To start, let's look at the strengths, weaknesses, opportunities, and threats related to Philips
medical equipment. Philips' robust brand image, cutting-edge technology, and wide range of
Weaknesses could include obstacles like expensive startup expenses, difficult upkeep needs,
or potential gaps in product offers as compared to rivals. Opportunities could come from new
may arise from fierce rivalry, modifications to regulations, or unpredictability in the economy
However, the growing demand for remote patient monitoring and healthcare
Buyers, such as hospitals and healthcare facilities, have significant bargaining power
due to the availability of alternative patient monitoring solutions and the importance
Price sensitivity and the ability to negotiate volume discounts can impact Philips'
Suppliers of key components and technologies for patient monitoring systems may
have some bargaining power, but Philips' strong relationships with suppliers and
However, the critical nature of patient monitoring in healthcare settings and the need
Finally, we look at Philips' approach to the marketing mix for medical equipment. We
examine the way in which Philips markets its goods (Product), taking into account elements
to a wide range of consumer demands. Value-based pricing, which represents the superior
quality and functionality of Philips equipment in comparison to rivals, is one of the pricing
methods (Price). Distribution channels (Place) play a crucial role in providing healthcare
providers with worldwide accessibility, whether via partnerships, direct sales, or internet
Servitization Strategies for Philips IntelliVue Patient Monitoring System to Philips Remote
professionals through its remote health monitoring platform. Patients can access
healthcare advice and guidance from the comfort of their homes, reducing the need
patients' vital signs using Philips monitoring devices. Healthcare professionals can
remotely monitor patients' health status in real-time and intervene promptly in case of
any abnormalities.
Personalized Health Plans: Philips can develop personalized health plans for each
patient based on their medical history, risk factors, and current health status. These
strategies to enhance the value proposition of its remote health monitoring service. This may
include:
Outcome-Based Pricing: Philips can offer outcome-based pricing models where the
cost of the service is linked to the health outcomes achieved by patients. For example,
the company could charge based on metrics such as reduced hospital readmissions,
efficiencies. If these targets are not met, Philips could offer compensation or
Data Analytics and Insights: The remote health monitoring service can leverage
providers. Philips can analyze the data collected from monitoring devices to identify
trends, predict health deterioration, and optimize treatment plans, thereby improving
By adopting these servitization strategies, Philips can transform its IntelliVue Patient
Monitoring System into a comprehensive remote health monitoring service that offers not
only hardware but also valuable healthcare insights and outcomes. This shift towards service-
oriented offerings aligns with the evolving needs of the healthcare industry and positions
the service, with an emphasis on high-burden conditions like chronic kidney disease,
diabetes, COPD, hypertension, and congestive heart failure. To reach patients with
these conditions, think about collaborating with insurance companies and healthcare
providers.
medical facilities to advertise the service and highlight its benefits for patients'
outcomes and financial savings. Think about including the service in wellness
medical professionals. In order to carry out clinical trials and publish studies on the
effectiveness of the service, think about collaborating with academic medical centers
or research institutes.
User friendly devices: Create user-friendly gadgets that don't require broadband
connectivity to make sure that low-income people, people who live in rural areas, and
people who live in cities without dependable internet access can all use them. To
guarantee that patients can operate the devices efficiently, think about providing
Support infrastructure: Give patients the assistance they need to make sure they get
test strips and other supplies they need. To include these supplies in the service, think
emphasize the significance of data security and privacy. Use risk-based defense-in-
depth security measures. To prove that the service is dedicated to protecting customer
Philips can establish itself as a pioneer in the telehealth industry by putting these tactics into
VIII. Conclusion
IntelliVue Patient Monitoring System, it becomes abundantly clear that the convergence of
innovation, technology, and customer-centricity lies at the heart of the healthcare industry's
transformative journey. Summarizing the key findings of our exploration, we reaffirm the
critical role of servitization strategies in driving value creation, differentiation, and customer
From our examination of Philips' strategic trajectory to the delineation of the competitive
dynamics shaping the healthcare technology landscape, our report has unearthed a myriad of
insights that underscore the imperative for companies to embrace innovation, collaboration,
Looking ahead, we posit that the integration of servitization strategies into B2B product
offerings will remain a cornerstone of success for companies seeking to navigate the
product development, service delivery, and customer engagement, firms can position
themselves at the vanguard of innovation, driving positive outcomes for patients, healthcare
In closing, we extend our gratitude to all stakeholders who have contributed to the realization
of this report, from the dedicated professionals at Philips to the visionary leaders shaping the
future of healthcare. As we embark on the next phase of our journey, let us remain steadfast
transformative power of technology to build a healthier, more resilient future for generations
to come.
IX. References
Kim, M., et al. (2023). Usability Study on Patient Monitoring Systems: An Evaluation
of a User Interface Based on User Experience and Preference. Journal Name,
Volume(Issue), Page Range.
Koenig, M., et al. (2021). Patient Monitoring Alarms in an Intensive Care Unit:
Observational Study With Do-It-Yourself Instructions. Journal Name, Volume(Issue),
Page Range.