Philipss largest competitor is the General Electric Company. Philips does not believe that GE will come out with a major effort on long-life lightbulbs.
Philips believes that GE would hurt itself if it focused on long life because it would shrink the incandescent market, of which it has an enormous market share. Philips feels that GE is likely to react by providing something other than long life, leaving the long-life niche to Philips.