1

Case study of Royal Philips Corporation and

the Intelligent Pill (iPill)

Daniel A. Sabol
MNG330 Sect A, Spring 2009

Professor Leonard Trugman

Final Project
March 23, 2009
Introduction /About Philips
 2

Philips is a global leader in healthcare, lighting and consumer electronics;

delivering customers with innovative products and services. Currently, they have

approximately 128,100 employees in more than 60 countries worldwide. With sales of

thirty-four billion dollars in 2008, Philips is a market leader in medical diagnostic imaging

and patient monitoring systems, energy efficient lighting solutions, as well as lifestyle

solutions for personal well being.

Each division has great market share and brand recognition both domestically

and internationally. One will begin by exploring Philips four primary divisions and what

makes them so successful.

Phillips consumer electronics division consists primarily of the creation of digital

televisions, radios, and home electronics. Phillips is always seeking to out compete its

rivals in the consumer electronics market. They happen to be third in the world and are

constantly trying to gain greater acceptance as a market leader. According to Phillips

website:

“Philips Consumer Electronics is the third largest consumer electronics company

in the world and a leader in the development of digital television systems and
compact disc applications. Its main product lines are television, video, audio and
set-top boxes” (Royal Philips Electronics)

Philips consumer electronics product line has been able to maintain its brand reputation

for many years. They continue to compete amongst the best names in the industry and

maintain their great brand through difficult times and new innovations in this market

area.

Second, Philips domestic appliances and personal care products. Philips

domestic appliances and personal care products range in size and cost, and include
 3

items like hair grooming tools and electric toothbrushes. According to Phillips website

its primary business lines consist of:

“Male shaving and grooming, body and beauty, food & beverage, home
environment care and oral healthcare lines of business. The division
manufactures and markets shavers, electric toothbrushes, women's beauty and
health care products, as well as domestic appliances around the world. The
division enjoys the number one global position in electric shavers with the
Philishave (international) and Norelco (USA) brands, the number one brand in
steam irons, and is a leading global player in dental care products under the
Sonicare and SensiflexTM brands. Philips also offers a range of small kitchen
appliances exclusively through Target in the U.S. and at retailers throughout
Canada.”(Royal Philips Electronics)

Phillips has an extensive domestic appliance and personal care line. It offers products

for individuals with many different needs. Their domestic appliances and personal care

line are strategically differentiated as a best cost provider of products in the domestic

and personal care industry.

Third is Philips lighting. Philips provides lighting solutions to individuals in many

industries and nations throughout the world. They are number one in this industry and

have many technologies that they market on a daily basis. According to Philips

“Lighting markets more than 2,500 lighting products to the retail, industrial/commercial,

consumer and original equipment manufacturer markets” (Royal Philips Electronics)

Philips has a large range of products within its lighting business. Those include the

ALTO low-mercury lamp and the compact fluorescent lamp. Within the automotive

industry they have the halogen headlamp. In addition their specialty products which

include the halogen brilliant crystal bulb which has been the official light bulb of the

Times Square New Year's Eve Ball.

Philips designs, manufactures and markets its own lighting products in the United

States. According to Philips, “Lighting employs almost 10,000 people in manufacturing,

 4

sales and distribution facilities throughout North America, and the division had annual

global sales of over $5.1 billion for the year 2003.( Royal Philips Electronics) This is

quite substantial. Other makers of lighting products, which include General Electric,

have less market share then Philips. Some competitors even turned to outsourcing of

their products to foreign nations to drive down cost and outcompete Philips, which did

not work. Along with Philips providing great products, they are also helping our

economy by providing jobs in US cities where their brand image is strong.

Last is Philips medical systems which are the focus of this paper. Philips is the

leader in medical devices in the United States. They provide medical solutions to most

medical facilities throughout the world. According to Philips website, “The division is

represented in more than 60 countries and employs over 20,000 people” (Royal Philips

Electronics) Philips greatest market share comes from the medical imaging business,

which include, x-ray machines, magnetic resonance, computed tomography products,

nuclear medicine and PET scanners. Philips has a large research and development

division that creates many new products each year. Philips research and development

is provided the largest budget and funding for new and innovative products like the

Intelligent Pill (iPill).

History

Philips Corporation is steeped in history, beginning with its founding fathers,

Fredrik and Gerard Philips and their first innovation, production of the incandescent

lamp. After their founding, Philips Corporation has had many years of great product
 5

creation and services which include revolutionizing the medical industry with new

technological advances and providing high caliber products to their customers.

Philips was founded and headquartered in Eindhoven, which is located in the

southern Netherlands. Philips Corporation was originally formed under the name

Philips & Company during 1891 by Fredrik and his son Gerard. Gerard was an

engineer by trade and had been working with another electric company when he began

working with his father to establish their company.

Gerard had been experimenting with light bulbs to try to extend their longevity.

During these times a younger son of Fredrik’s named Anton, had also entered the family

business expanding them into international arenas. Anton had a better understanding

of business than his brother Gerard. As a result, he was able to expand the business in

many ways.

The Philips children established an autocratic leadership style for running their

company. According to Encyclopedia Britannica, “…with a tradition of taking care of

their workers from the cradle to the grave. Philips built housing, schools, and hospitals

and, from 1900 onward, provided free medical aid.” (Encyclopedia Britannica) The

Philips sons were very autocratic leaders. They developed a reputation of being

managers who liked to help those who were in need. The brothers set the company up

to care for its stakeholders. This is why one feels that the company did so well for so

many years after the family’s departure.

During the nineteen hundreds, Philips grew and expanded due to the creation of

new lighting technologies. Philips established a new research and development lab to

work on product innovations and bring to market new ideas. Shortly after the
 6

development of Philips labs and research the company turned out new ideas and

regularly patented innovations. According to Philips website,

“This marked the beginning of the diversification of its product range. Having
introduced a medical X-ray tube in 1918, Philips then became involved in the first
experiments in television in 1925. It began producing radios in 1927 and had sold
one million by 1932. One year later, it produced its 100-millionth radio valve, and
also started production of medical X-ray equipment in the United States.” (Royal
Philips Electronics)

Philips provided many new innovations to make life a great deal easier. After the

invention of the aforementioned products, they introduced the electric razor. This was a

great invention amongst individuals throughout the world. From having to shave with a

straight razor to electrically shaving was a great leap forward for those who could afford

the product.

During the nineteen sixties Philips became involved with radio and television

recording and developing camera accessories. Philips work in creating a better camera

tube and its introduction of a portable audio recorder changed these industries forever.

According to Philips website:

“Philips made major contributions in the development of the recording,

transmission and reproduction of television pictures, its research work leading to
the development of the Plumbicon TV camera tube and improved phosphors for
better picture quality. It introduced the Compact Audio Cassette in 1963 and
produced its first integrated circuits in 1965” (Royal Philips Electronics)

Philips has paved the way for many of the newer technologies that exist. They are

looked upon as the industry leaders who have made many technologies and ideas in

science possible resulting from the hard work and commitment from their leaders.

During the nineteen eighties and nineteen nineties, Philips continued to grow

internationally and develop new products. Philips began acquiring many companies to

broaden its product line. Their new subsidiaries included Magnavox and the lamp
 7

division of Westinghouse, just to name a few. Philips continued to maintain its market

share in the industry and will continue to develop products within this digital age.

Phillips Mission, Vision and Values

According to Phillips website its Mission states, “We improve the quality of

people's lives through the timely introduction of meaningful technological innovations.”

(Royal Philips Electronics) This is quite true about Philips Corporation, being that it is

very technologically driven and brings products to market quicker than its rivals. They

are a provider of high quality products that enhance the lives of their customers. They

also are known for their many different products to choose from.

Philips Vision states, “In a world where technology increasingly touches every

aspect of our daily lives, we will lead in bringing sense and simplicity to people.”(Royal

Philips Electronics) Overall, this vision statement is a bit simple. It does not provide

any clear information on where it sees itself in years to come or how it will get there. It

lacks substance to let the reader know where they are going and what business they

will be in. What new product lines will Philips work on? In this industry most information

is confidential, but a vision should not be.

Philips values consist of, delight customers, deliver great results, develop people

and depend on each other. When thinking of the idea of delight customers, one can

only think of how the brand brings happiness to many individuals throughout the world.

I have had quite a few products made by Philips and have been quite satisfied by their

performance. They lasted many years without any problems. This would be a delight to

any customer, especially in these difficult economic times.

To deliver great results one has to provide great products that are dependable.

This is especially true within the medical industry. When so many individuals depend
 8

on a product to perform in hospital emergency rooms or intensive care units, one would

only expect it to “deliver great results”.

Philips is known for their great talents who have helped develop their products.

Philips attracts top talent from many select universities. They are well known for high

paying positions and great opportunity for career advancement.

And lastly, the idea of “depend on each other” is great. Philips relates their

product reliability from employees directly to its customer. If you depend on Philips

products you are depending on Philips employees. And in turn, each depends on each

other.

Goals and Objectives

Philips has many goals and objectives, but lists its primary three in its annual

report. They are to drive performance, accelerate change and implement better

strategies.

Goal I

Philips first goal is to drive the performance of their corporation towards a better market

position. According to Philips annual report they will achieve this goal with the following,

“relentlessly manage cash, proactively align cost structure with market conditions and

increase productivity, manage risks and opportunities in a balanced way to strengthen

our market positions” (Philips Annual Report)

Philips Corporation manages cash to ensure they have enough to pay down their

debt and maintain profitability. Philips wants to ensure that their current assets are far

greater than their current liabilities. If Philips assets are greater they have more working
 9

capital which helps to ensure that they can finance inventory, additional accounts

receivable and larger operations without having to borrow or raise capital.

Philips will continually align cost structures with market conditions; therefore,

scrutinizing all spending activities to ensure its ratio of fixed cost to variable cost is

aligned. Aligning cost structures with market conditions will help ensure they are not

overspending in bad markets, and getting the best possible cost for materials that go

into their products. Also, Phillips plans to increase productivity, which demonstrates

that they will grow in this market downturn. An increased productivity will help Philips to

expand into different markets as it wants to.

Lastly, driving performance to manage risk and ensure they maintain their market

position. This is key in our current economic situation. Companies need to find a

balance between high performance and risk. Entrepreneurs equate risk with great

reward, but this generally equates with a high performance company. Many feel that

you need to take risk to have high performance. But, one feels that now you need not

be risky; rather take a more cautious role when making decisions about market position.

Just as one could gain market share, he could lose it. Executives at Philips have to

determine to either take a more or less cautious role for the future.

Goal II

The second goal of Philips is to accelerate change. According to their annual

report they plan to accelerate change in many ways which include,

“Organize products around customers and markets, thereby improving net

promoter score, increase employee engagement to high-performance levels and
implement ‘Leading to Win’, accelerate sector transformation programs”(Philips
Annual Report)

The first area of the second goal of Philips is to organize products around

customers and markets, thereby improving their net promoter score. The net promoter
 10

score is a management tool that can be used to gauge the loyalty of a firm's customers

and how good the relationship is between them. It serves as an alternative to traditional

customer satisfaction research. According to the Net Provider web site,

“Net Promoter is both a loyalty metric and a discipline for using customer
feedback to fuel profitable growth in your business. Developed by Satmetrix,
Bain & Company, and Fred Reichheld, the concept was first popularized through
Reichheld's book The Ultimate Question, and has since been embraced by
leading companies worldwide as the standard for measuring and improving
customer loyalty” (Net Promoter)

Philips has achieved a high level of customer satisfaction due to their great product line

and reliable service. By Philips using Net Promoter to analyze how well they are

ranking based on customer opinion, shows they thrive on positive customer relations,

recommendations and referrals. This is how their business grows. Philips feels that

their products maintain great customer recognition and will continue to do so.

The next area of Philips second goal is to increase employee engagement to

high-performance levels. This is necessary when you have a top performing

corporation such as Philips. Employees are your most valuable assets and when they

are high performing, the establishment is also high performing. Philips has enhanced

its training programs to ensure that all of their employees are cross trained in many

areas. They feel that employees need to be flexible and should be able to work where

they are needed within their department. All individuals who are hired to work at Philips

are considered for higher level positions. Generally, Philips entry level employees get

their first promotion within two years of their hire date.

The third area of Philips second goal is to implement ‘leading to win’ sector

transformation programs. Phillips will enhance their training programs for the best

employees who have potential to lead their division or sector towards larger growth and
 11

better profit. Philips hopes that these programs will assist in transforming their future

growth potential by investing in its current leaders. Usually, MBA candidates are hired

into fast track positions within the “leading to win” program. These individuals show the

greatest opportunity to succeed in this rigorous type of training environment.

Goal III

Goal number three for Philips consists of implementing a successful strategy that

will help drive its goals and vision. According to Phillips annual report,

“Our strategy consists of further building the brand in the Health and Well-being
space, continue to re-allocate resources to growth opportunities and emerging
markets, including selective mergers and acquisitions. And to increase revenue
derived from leadership positions” (Philips Annual Report)

Philips strategy clearly states where the company wants to be which is within a certain

product market. Philips corporation strategy seems to be that of a niche market

provider of service and products. They provide great quality products to the health and

well being sectors. Philips will continue to build their brand in the health and well being

markets and other areas it deems necessary to maintain and grow.

Second, is to continue to re-allocate resources to growth opportunities and

emerging markets. They are a multinational corporation with many units, divisions and

product lines. They will continue to reallocate resources to help develop new products

like, the Intelligent Pill (iPill). New product innovations continually help Philips to

develop and grow into new emerging markets.

Last, Philips will continue to enhance how much their leaders are able to

generate for the business. Phillips believes that for a company to be successful, its

leaders have to be successful. Philips will continue to push its top performers to drive

the most sales and revenues they can which will then drive their bottom line upward. As
 12

Philips top management continues to generate revenue they will also build relationships

that will provide future success for Philips.

Leadership and Organizational Dynamics

Leadership at Philips Corporation appears in the form of a formal administration.

This is the leadership exerted by persons appointed or elected to positions of formal

authority in an organization. Philips is lead by an executive leadership team and a

board of directors. Gerard Kleisterlee, President/Chief Executive Officer and Chairman

of the Board of Management and the Group Management Committee since April 30,

2001, leads a strong experienced executive leadership team focused on executing

Philips vision and driving shareholder returns. In addition, Philips Board of Directors are

responsible for overseeing the company's business, determining their mission,

developing long-term strategy and managing the company's risks, while evaluating and

directing controls and procedures.

Philips uses a combination of organizational bases. On the corporate level they

use the simplest form and a line organization. Authority flows from chief executive

officer to first subordinate; as well as a functional organization, which adds vice

presidents, who are specialist in various areas, and gives each line authority.

The Board of Directors is made up of independent directors, management

directors and non-management directors. According to Philips Corporate Governance

Guidelines, an independent director has no material relationship with the company and

can be defined as independent under the Securities and Exchange Commission (SEC)

and New York Stock Exchange (NYSE) rules.

Directors who are officers or employees of the company are considered

management directors and those who are not considered either of the two previously
 13

described are non-management directors. The Board selects the CEO and Chairman of

the Corporation.

There are several board committees: The Audit and Finance, Compensation and

Management Development, and the Governance, Nominating and Social Responsibility

Committees, which are made up only of independent directors. Following this level

there are many different departments and cross functional teams such as Research and

Development and Planning and brand/department heads such as the President of

Men’s Electric Shavers or the Executive Vice President of Human Resources.

Philips CEO

Philips Corporation has many Chief Executive Officers for their different divisions

globally, but this work will only focus on one, Gerard Kleisterlee of Royal Philips

Electronics Corporation, which is the parent of all of the divisions.

Gerard Kleisterlee was born in Germany, and attended Eindhoven Technical

University in the Netherlands where he obtained a degree in Electronic Engineering. He

received an honorary doctorate from the Catholic University of Leuven, Belgium in

2005.

Klisterlee was employed by the Philips’ Medical Systems division in 1974, where

he held a number of positions in manufacturing. From 1981 to 1986 he was the

General Manager of Philips’ Professional Audio Product Group. Kleisterlee was then

hired by Philips Components in 1986 as Industrial Director for Display Components and

was appointed Managing Director of Philips Display Components worldwide in 1994.

He became President of Philips Taiwan and Regional Manager for Philips Components

in Asia-Pacific in 1996. From September 1997 to June 1998 he was also responsible

for all activities of the Philips Group in China.

 14

Mr. Kleisterlee was sent back to Europe in 1999 as CEO of the components

division and was appointed a member of the Group Management Committee in 1999,

and Executive Vice-President of Philips and a member of the Board of Management in

2000. He was appointed Chief Operation Officer of Philips during 2000. On April 30,

2001, he was appointed Chief Executive Officer of Philips and Chairman of the Board of

Management and the Group’s Management Committee.

About Philips iPill

Many individuals in our country face a range of digestive track problems, which

include colon cancer, colitis, Crohn's disease, and irritable bowel syndrome or lactose

intolerance. Philips discovered a revolutionary technology that they feel will move the

medical industry one step closer to finding answers to many questions regarding

gastrointestinal disorders. The Intelligent Pill or iPill will eventually provide answers to

many medical questions. The new technology will be able to snap pictures and release

medicine where needed when inside the body. According to Philips website,

“It is the need for electronically controlled drug delivery. In addition to the
potential benefits of this new technology to improve patient therapy, the iPill
promises to be a valuable research tool for the development of any new drug
that is delivered via the intestinal tract. The challenge for scientists at Philips
Research was to find a way of navigating a drug-loaded pill capsule to the site of
disease and then releasing a metered amount of drug into the gut at that
location”(Royal Philips Electronics)

Philips has not yet received FDA approval, (March 16, 2009), for its pill, but strongly

believes that they will shortly. Also, with this technology will come a more advanced

understanding of the gastro region of the human anatomy. According to doctors I have,

questioned, this area of the body is one of the most complicated areas to understand

and doctors are still learning new things every day.

 15

How the Pill works

The iPill is mechanically designed to provide optimum quality pictures and great

benefits due to its size. According to Philips website, “The pill is an 11x26 mm capsule,

which incorporates a microprocessor, battery, pH sensor, temperature sensor, RF

wireless transceiver, fluid pump and drug reservoir.”(Royal Philips Electronics)

The microprocessor works in many ways and acts as a GPS system for the pill;

whereby, informing the doctors of its exact location in the body. The microprocessor is

the brain of the device and maintains its operating instructions within it. It also

dispatches information back to a central computer periodically. The processor is able to

store body temperature information and tell the pill when to release drugs into the body.

Next, is the iPill’s battery. According to Philips website “The iPill is powered by a

silver oxide battery that holds a charge intended to last 48 hours—about twice the

duration of the pill’s natural transit through the body”(Royal Philips Electronics) The

battery lasts longer then an average battery of its size. Some patients have concerns

that the battery will explode inside them creating acid leakage. This pill has been put

through rigorous test by Philips to ensure that it would not create any problems in the

body.

Next is the pH sensor, which helps the iPill maneuver its way through the

stomach. It is able to determine where its location is based on the amounts of pH that it

receives within its sensor. The stomach is very high in acid, but the intestines are much

less; therefore, letting the iPill know its exact location within the body based on the

various levels it comes into contact with. When it reaches the colon the pH sensors

detect this due to the lesser amounts of acid in this region.

 16

The temperature sensor acts as the on/off switch for the iPill. When it is

swallowed it goes from room temperature to body temperature. This starts the

microprocessors function to determine exactly where the pill is. Also, being that the

body temperature varies slightly throughout different locations the pill is able to better

determine its exact location. The pill can be programmed to release medicine in higher

temperature region or as directed by the physician using the pill.

The RF wireless transceiver helps the pill to communicate information from the

body to the freestanding computer. According to the Philips website,

“The iPill can communicate by radio frequency with a control device outside the
body. It can gather temperature data, for example, and report on changes it finds
as it travels” (Royal Philips Electronics)

This aspect of the iPill is very technological. Doctors can receive this information and

quickly determine if the medicine a patient is receiving from the iPill is working. Also, a

great safety feature is the pills ability to be shut down. If the doctor monitoring the pill

determines that you are having a reaction to the medicine being released, he can turn it

off. If a patient takes a certain medicine orally and begins to react badly, doctors

usually have to wait until the body metabolizes it or provide the patient with an antidote

to reverse the symptoms. Now the medicine released can be stopped causing less of a

reaction for the patient.

Lastly, are the fluid pump and drug reservoir. The drugs that the physician

determines will best suit ones conditions are loaded into the iPills reservoir. The pill can

be set up to release single or multiple doses in one or many areas of the stomach. The

pump works very much like any typical engine. According to the Massachusetts

Institute of Technology’s (MIT) Technology Review, “The pump that releases the drugs

consist of a motor and a piston driven by a screw rod, which can move precise amounts
 17

of fluid at the command of the microprocessor”(Technology Review) The pump works

much like a car engine. It works with a piston and a motor that pushes the medicine

into the body, much like a needle giving an injection.

How Philips stands in the camera pill market

Initially, I decided to focus on the market which the Intelligent Pill will compete to

determine how it stands. I started my market analysis with a competitive strength

assessment. This assessment uses a weighted average method and weights which I

have placed to determine how well Philips ranks amongst its main competitor, RF

Systems which makes the capsule endoscope named “Sayaka”.

Competitive Strength
Assessment
RF
Importanc Scor System Scor
e Weight Philips e s e
Quality/Product performance 0.3 8 2.4 8 2.4
Reputation/Image 0.3 8 2.4 5 1.5
Price 0.125 9 1.125 3 0.375
Customer Base 0.1 10 1 4 0.4
Customer Service capabilities 0.025 8 0.2 2 0.05
Sales 0.15 7 1.05 2 0.3
Weighted overall strength 8.17 5.02
rating 1 50 5 24 5

Based on my findings listed above, one can see Philips competitive strength

assessment scores much higher than RF Systems. Philips achieved an 8.175 and RF

Systems a 5.025. Overall, Philips is much better positioned in this market then RF

Systems.
 18

Next, one completed a Strengths, Weaknesses, Opportunities, Threats

(S.W.O.T.) Analysis of Philips industry to determine how well the company is positioned

to compete in the iPill market.

Strengths
Number one in industry.
Billions of dollars for R&D.
First to market iPill idea.
Large brand recognition.
Proven reliability of products.
Weaknesses
Idea easily copied.
Possible failure of product.
Low entry barriers into market.

Opportunities Threats
iPill gets acceptance into FDA does not approve.
medical community Pill failure.
throughout world. Better product innovation.

Medical Breakthroughs using iPill.

Using a S.W.O.T. analysis reveals a great deal about the market competitiveness

and how well Philips will fair when competition begins to increase. Based on my

analysis I found that the iPill has far more strengths then their competition. Philips also

has some opportunities they should be able to develop in the future. Lastly, they have

to worry about the threats of the iPill. Getting FDA approval is very important and if they

do not receive this the pill will fail. Also, if the pill gets regulation approval, but happens
 19

to be unsuccessful or make patients sick, this could create great damage to Philips

iPill’s business.

Founder and Economics of iPill

The founder of the iPill is Dr. Peter van der Schaar a gastroenterologist in the

Netherlands. He worked with Philips for many years to develop this device. Dr. van der

Schaar felt that there was a strong need for a device that could enter the body and

reveal problems that were making his patients ill. He wanted to design a device that not

only could take pictures, but also, a device that would be able to release proper

amounts of medication where and when it was needed. This is when Dr. van der

Schaar became aware of an idea that may just be able to do all of the things he wanted.

He presented his solution to Philips who quickly decided to work with him to bring this

product to market.

There are many economics to consider regarding the Philips iPill, which is still in

the prototype stage. If all goes well, it will sell for one thousand dollars per pill when it

hits the market. As the demand grows for the pill and the learning curve grows larger,

Philips will be able to make the product cheaper and spread the cost over a larger

portion of its inventory. This will help to reduce the price, with hopes that the pill will

eventually get down to ten dollars per unit.

Currently, the pill cost the company about eleven hundred dollars to make. It will

have additional cost when it begins to be distributed to patients. Some of the additional

cost will be those incurred for certain medicines that are placed into the pill, fees
 20

associated with the physician who monitors the pill’s findings every day, the price of the

pictures it produces and the cost of any malfunctions or problems that may occur.

Where the pill will be manufactured and by whom

Currently the iPill is being tested in Westchester County, New York. According to

the New York Times, “The device is being tested at the Philips Research laboratories in

Briarcliff Manor, NY.” (New York Times). The pill’s development will continue in the

north east operating division in the United States. It is believed that the pill will be

assembled in the United States, but some of the smaller parts that make the iPill

complete will be made at the Philips headquarters located in the Netherlands.

Philips may also merge with some of its competitors in this industry to help

strengthen the technology of the product and maintain better ideas for the future of the

product.

My recommendations regarding Philips and the iPill.

I feel that Philips Corporation is one of the best in its industry and is a very large

company with deep roots ingrained throughout the world. Philips has provided solutions

to many problems dating back to as early as the 1800’s. Philips will continue to

maintain its market share and compete as a top provider of medical and personal

solutions.

If the iPill receives recommendation from the FDA to operate, I feel that the iPill

will grow rapidly throughout many countries. The pill will provide many solutions to

problems that ill patients currently face. As the technology grows the pill may advance

to other areas of the medical industry including cardiology. Where the pill may one day
 21

enter into a patients veins and inspect arteries and clots; therefore, preventing a heart

attack or other ailments.

Overall, the company will continue to do well. If approved, the pill will take off

and gain great brand recognition. I believe very strongly in Philips and would purchase

shares in the company’s stock. I would also purchase corporate bonds to help Philips

continue its operations.