In 2008, Philips switched from manufacturing and selling TVs in North America to a brand licensing model. We wrote about it here.
Continuing this strategy, Philips now announced a brand license for its digital photo camera and digital picture frame business in the USA and Canada.
The licensee will have access to Philips’ brand, technology and engineering. Production, sales and marketing will be the responsibility of the licensee.
Of course, Philips maintains control by executing its right of final approval.
This is the business model of the future. We call it:
“Doing only, what one does best.”
This business approach was chosen by P&G a while ago, it is called connect and develop. It led to increased profitability even during the current recession.