Framing Innovation Philips' Strategies for Digital Photo Frames

In 2005 Philips launched its digital photo frames, which became a hit because of their simple exteriors, high quality displays, and their positioning as photo browsing and sharing devices. These products have inspired followers and sparked a trend that is still going strong today. Philips was not the first to release a digital photo frame, as both Kodak and Sony had already released similar products before 2005; but these companies exited the market when it failed to take off. It is surprising then that in these seemingly unfavorable market conditions Philips was able to develop a product that not only was successful but was the beginning of a wider market trend. This report investigates Philips' product value creation strategies for digital photo frames.