APC 2002 Annual Report Download - page 10

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gradually becoming commonplace. The same is true for
transparent factories and infrastructure, in which electrical
equipment can communicate and be operated remotely.
In response, we have made it our mission to supply customers
in our various markets with reliable, high quality products
to help them create value in their core businesses. We also
want to offer them comprehensive, personalized solutions
and services to met their needs in more complex areas
of power and control. Our ambition is to expand the use
of our products and carve out a position as the unrivaled
global leader in this growing market.
To make this vision reality, we have deployed our strategy
in several key directions:
Expand our product lineup. Demand is high for new
products and services in our main markets. According to our
estimates, electrical distribution, industrial control and
automation could represent a potential market of at least
210 million. As a result, we are working to expand our
product lineup to better serve the building, industry, energy
and infrastructure markets. We have also identified an entire
range of new products and services to extend our current
offer. We are convinced that we can considerably increase
our sales and market share by developing products internally,
making strategic acquisitions and adding services
to our products.
Develop Transparent Ready™ products, equipment and
services. Leveraging innovative products to widen our market
share means developing the Transparent Ready™ concept,
which harnesses the power of the Internet
for electrical distribution, industrial control and automation.
In the Building market, Transparent Building™ applications are
revolutionizing building management by making it possible to
monitor buildings and all the functionalities of existing systems
via a local area network (LAN). Solutions have been designed
to cover all functions, from electricity, lighting and shade
management, access control and intruder alert, to air
conditioning, elevators, and fire detection and alarms.
In the Industry and Infrastructure markets, Transparent
Factory™ solutions use automation systems to enhance the
processing and communication capabilities of industrial system
components. Preventive maintenance can be carried out
remotely, making for less downtime and greater efficiency and
flexibility. In addition, virtually real-time harvesting of data
on energy consumption in one or several sites allows users
to manage their energy costs even more effectively.
Enhance our approach with Global Strategic Accounts.
Our focus on Global Strategic Accounts is a key part of our
strategy. Through our dedicated Schneider Global Business
Development (SGBD) unit, we supply our main international
customers with technological, logistic and contracting solutions
that can be deployed around the world. SGBD’s mission
is to help make us the benchmark for power and control
with a selected group of international customers. We currently
leverage our skills in a wide range of sectors, from
microelectronics to pharmaceuticals to automobiles, to
continuously enhance the productivity of 85 Global Strategic
Accounts. In this way, SGBD serves as a springboard
for getting the most out of the potential offered by the power
and control market around the world.
Forge partnerships and alliances. We have entered into
partnerships and alliances with companies outside our industry
to enhance our innovation capabilities, speed development of
new products and penetrate new markets. Our joint venture
with Thomson Multimedia, for example, is involved in
developing power line carrier technologies to transmit digital
data over electrical wires. We also have an agreement with
Toshiba that gives us access to the traditionally closed
Japanese market and makes us the world leader in speed
drives. We intend to pursue this strategy of joint ventures,
partnerships and alliances to extend our lineup and enter new
markets.
Focus on targeted acquisitions. Schneider Electric makes
selective acquisitions to penetrate new markets, expand its
lineup and develop synergies with its existing product portfolio.
The acquisition of Lexel, for example, strengthened our
position in the ultraterminal segment and opened the door
to the fast-growing Voice-Data-Image market. The acquisition
of Crouzet, a French leader in electronic control and small
automation devices, and of Germany’s Berger Lahr (formerly
Positec), a European leader in motion control, allowed
us to expand our automation lineup. Backed by these three
companies, we will support the development of our lineup
in our main markets with new targeted acquisitions.
In late 2002, we acquired a majority interest in Japan’s Digital
Electronics Corporation, the world leader in human-machine
interface products such as industrial PCs and graphic and
touch terminals. These products are a critical component in