APC 2015 Annual Report Download - page 20

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC18
OVERVIEW OF THE GROUP’S STRATEGY, MARKETS AND BUSINESSES
1GROUP STRATEGY ANDMARKETOPPORTUNITIES
1.4 Group competitive strengths
Schneider Electric is a leader in technology innovation and adapts
to changing ecosystems and customer needs.
Technological leadership in energy
management and automation
We are developing best-in-class technology in energy management
and automation to meet growing customer needs and challenges.
We estimate that nearly 80% of our revenue is derived from sales in
businesses where Schneider Electric enjoy as number one or two
market position: low voltage distribution, medium voltage distribution
and grid automation, discrete industrial automation and control,
critical power and cooling. We design products and solutions that
we believe offer the best levels of safety, reliability and effi ciency
in our markets. This is achieved through signifi cant investment in
research and development, which supports our innovative product
offerings and our ability to offer our customers market- leading
solutions that seamlessly integrate the different technologies in our
portfolio. As a result, our products and solutions meet the needs
of our customers for simplicity, connectivity, fl exibility, productivity
and effi ciency. Additionally, through an ongoing dialogue with our
customers, we are able to maintain our very high standards of
quality and to anticipate the innovation that will help drive our future
growth. Thanks to this technological leadership, the Group’s major
brands are among the most recognized in our industry.
Multiple access channels to a broad and diffuse
user base
We work with many types of partners, such as distributors, system
integrators, contractors, panel builders, electricians, machine
manufacturers and others, as well as with our end customers.
TheGroup has developed the widest network of distribution and
direct partners in its industry. This provides us with many access
channels to a market comprised of a broad and diffuse user base.
These diverse market access channels, which support our model
with limited capital investment, help to ensure that we are not
dependent on a limited number of large customers.
Success in this industry requires strong, long-term relationships
with our distribution partners and end customers and the Group
is therefore constantly seeking to enhance the value that we add .
For example, we provide training for our partners and participate
in industry efforts to improve applicable regulations and safety
certifi cations. These efforts and relationships also help to reinforce
our reputation as a trusted partner and allow us to benefi t from solid
pricing power.
Global reach with a unique local presence
We have operations in more than 100 countries, providing a
balanced geographical exposure on a global basis. Due to our large
footprint, we are one of the few partners of multinational companies
that look for the highest standards of technology and quality for
their energy management equipment in all their operations around
the world. This allows us to provide an optimal service to our global
customers. In addition, we have deep-rooted local presence and
strong partnerships in all countries to serve our highly-dispersed
part of our customer base. Lastly, with 43 % of our revenues in new
economies in2015, the Group believes it is positioned to capture
the higher growth potential of these markets. Our presence in many
diverse markets ensures that we understand local needs, which
assists us in serving our customers in each country with dedicated
products and solutions adapted to local requirements.