APC 2014 Annual Report Download - page 23

OVERVIEW OF THE GROUP’S STRATEGY, MARKETS AND BUSINESSES
BUSINESSES, END-MARKETS AND CUSTOMER CHANNELS
Products and Solutions, two complementary business models 2.3
1
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, such operate. We market and sell our products principally through
as highly customized products or combinations of our products, distributors and direct partners, such as contractors, system
and services. Our products and solutions businesses have different integrators and electricians, who provide us with the ability to reach
revenue growth and profitability profiles, with our solutions large numbers of small and medium-sized customers.
business complementing our products business. Solutions are also
Solution business model
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 to larger customers.
We believe our products offer best-in-class technology, strong
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 intermediaries Schneider Electric assists its distributors in advising their
such as distributors, systems integrators, installers and purchasing customers and helping them to benefit from technical innovations.
advisors, who all bring their own added value and know-how, To maintain a high performance network, the Group works hand in
allowing the Group to access a number of different markets. hand with distributors on supply chain issues, technical training
and marketing. Internet tools now occupy a dominant position for
Distributors & retailers
sales, and above all, provide up-to-date 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
Distributors account for approximately 42% of the Group’s total access to information.
revenues through an extensive network in 190countries all over
Other intermediaries & partners
the world.
Schneider Electric works with many different types of distributors:
local distributors, electrical wholesalers and generalist distributors,
Panel builders
large international groups such as Rexel, Sonepar, Graybar and
Grainger, IT specialists such as Tech Data and Ingram Micro in the Panel builders build and sell electrical distribution or
United States. In the residential renovation sector, Schneider control/monitoring switchboards, primarily for the buildings, energy
Electric also sells products through large home improvement and electricity infrastructure markets and industry. Their main
chains such as Home Depot and Lowes in the US, Kingfisher in the customers are contractors. Panel builders mostly buy low and
UK and Saint Gobain Distribution in France. In addition, the Group medium voltage devices, such as circuit breakers and contactors,
uses specialized distribution channels for highly technical products and increasingly, prefabricated systems. There are more than
such as automation solutions and industrial software, as well as for 20,000 panel-builders throughout the world.
access control and security products.
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2014 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC