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Because of Holland's small size Philips was soon forced to expand to other countries for having enough volume to mass produce. So it started building sales organizations in the United States, Canada, and France. All other functions remained highly centralized in Eindhoven. Philips created also local joint ventures to gain more market acceptance.
After entering into an agreement with General Electrics in 1919, giving each company the use of the others patents, Philips began evolving to a decentralized sales organization. It founded independent marketing companies in 14 countries in Europe, China, Brazil and Australia and also broadened its product line significantly...
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