APC 2013 Annual Report Download - page 24

1OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
BUSINESSES, END-MARKETS AND CUSTOMER CHANNELS
Products and Solutions, two complementary business models 2.3
The businesses in each of our four business segments offer achieve scale and pricing advantages in the markets in which we
products and solutions. Solutions are comprised of systems, operate. We market and sell our products principally through
such as highly customized products or combinations of our distributors and direct partners, such as contractors, system
products, and services. Our products and solutions businesses integrators and electricians, who provide us with the ability to
have different revenue growth and profitability profiles, with our reach large numbers of small and medium-sized customers.
solutions business complementing our products business.
Solution business model
Solutions are also an important platform to develop our presence
in Services, where we can deliver high added value with higher
business recurrence and low capital requirements. We believe our solutions offer leading technology, strong
Product business model
integration and service capabilities and segment-specific
expertise. We market and sell our solutions through direct
partners, such as contractors and system integrators, or directly
We believe our products offer best-in-class technology, strong to larger customers.
channel access and optimal quality and cost, which allows us to
Multiple accesses to market 2.4
Customer satisfaction
Customer satisfaction is an integral part of Schneider Electric’s growth strategy. Every contact with Schneider Electric
should be a positive experience that makes all customers, no matter who they are or where they are located, feel
understood and satisfied. This commitment is an important differentiating factor, and customer satisfaction surveys
are regularly carried out in all countries in which the Group operates, and employees attend related training
programs.
Customers also have access to online diagnostics and support services (an e-catalogue, downloadable software and
online information and training).
A large portion of Group revenues are made through Schneider Electric assists its distributors in advising their
intermediaries such as distributors, systems integrators, installers customers and helping them to benefit from technical
and purchasing advisors, who all bring their own added value innovations. To maintain a high performance network, the Group
and know-how, allowing the Group to access a number of works hand in hand with distributors on supply chain issues,
different markets. technical training and marketing. Internet tools now occupy a
dominant position for sales, and above all, provide up-to-date
Distributors & retailers information. Through the e-Shop, distributors can link Schneider
Electric’s product database to their e-commerce sites so that
customers have reliable 24/7 access to information. As part of a
Distributors account for approximately 50% of the Group’s total program to develop energy efficiency solutions with distributors,
revenues through an extensive network in 190countries all over the Group has published a catalogue of energy efficiency
the world. solutions that suit the needs of different markets and customer
Schneider Electric works with many different types of segments.
distributors: local distributors, wholesalers and non-specialized
Other intermediaries & partners
professional distributors, large international groups such as
Rexel, Sonepar, Graybar and Grainger, IT specialists such as
Tech Data and Ingram Micro in the United States. In the
Panel builders
residential renovation sector, Schneider Electric also sells
products through large home improvement chains such as
Panel builders build and sell electrical distribution or
Home Depot and Lowes in the US, Kingfisher in the UK and
control/monitoring switchboards, primarily for the buildings,
Saint Gobain Distribution in France. In addition, the Group uses
energy and electricity infrastructure markets and industry. Their
specialist distribution channels for highly technical products such
main customers are contractors. Panel builders mostly buy low
as automation solutions and industrial software, as well as for
and medium voltage devices, such as circuit breakers and
Pelco’s access control and security products.
contactors, and increasingly, prefabricated systems. There are
more than 20,000 panel-builders throughout the world.
22 2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC