A Local Production Strategy Was Implemented to Ensure High Quality

A Local Production Strategy Was Implemented to Ensure High Quality

Philips decided to manufacture the consumer product line in its own factories. Philips has enormous production capacity. The total consumer and industrial Philips product line includes over three thousand different types of lightbulbs. Philips has seven factories in the United States, one in Canada, and one in Mexico. It also has additional production facilities in Europe. By producing all of the lightbulbs internally, Philips believed that it would be able to maintain much better quality than if it imported the lightbulbs from the Far East. The company felt that this would represent an advantage over some of the competition.