Finance
Strategy RecommendaƟons for Schneider Electric Corp. φτυχ
ExecuƟve summary: Improving compeƟƟve posiƟoning to drive sustainable market growth for Schneider
Electric CorporaƟon – A speculaƟve analysis
IntroducƟon:
Schneider Electric CorporaƟon S.A (SCHN.PA) (hereaŌer called in this report as Schneider) is a global specialist in energy management. They parƟcipate across mulƟple markets like industrial automaƟon and process control, energy, data centers, buildings and residenƟal. For this analysis, we would be assessing and strategically evaluaƟng the process automaƟon segment (which includes wireless instrumentaƟon, programmable logic controllers, Manufacturing execuƟon systems, etc.). The Global process automaƟon market is about US$120 billion (2012) and is expected to grow at a compounded annual growth rate (CAGR) of 4 to 5.5% over the next 5 years. The process automaƟon market has seen mostly organic growth with very liƩle major inorganic growth strategies over the past 5 years. The main compeƟtors of Schneider for this parƟcular market segment are ABB, Invensys plc, Siemens AG,
Honeywell Process SoluƟons, etc.
In the macro industry analysis, the environmental factors that are relevant to this analysis are market size, growth, mega trends, demographic trends, macro-economic trends and technological trends
(Exhibit 1). Growing demographic populaƟon promises sustainable growth through infrastructure growth. The need for energy, electricity and food drives long-term secure industry investments in emerging markets mainly. One of the other evolving trends that is a major concern for Schneider is the evolving customer buying behavior which is tectonically shiŌing from piece-part products to more integrated soluƟons capability. The impact of this shiŌ on Schneider is long-term loos of market share as it’s compeƟtors are well poised to capitalize and leverage this market shiŌ. Secondly, the cyclical and uncertain growth paƩern is forcing automaƟon
ExecuƟve summary: Improving compeƟƟve posiƟoning to drive sustainable market growth for Schneider
Electric CorporaƟon – A speculaƟve analysis
IntroducƟon:
Schneider Electric CorporaƟon S.A (SCHN.PA) (hereaŌer called in this report as Schneider) is a global specialist in energy management. They parƟcipate across mulƟple markets like industrial automaƟon and process control, energy, data centers, buildings and residenƟal. For this analysis, we would be assessing and strategically evaluaƟng the process automaƟon segment (which includes wireless instrumentaƟon, programmable logic controllers, Manufacturing execuƟon systems, etc.). The Global process automaƟon market is about US$120 billion (2012) and is expected to grow at a compounded annual growth rate (CAGR) of 4 to 5.5% over the next 5 years. The process automaƟon market has seen mostly organic growth with very liƩle major inorganic growth strategies over the past 5 years. The main compeƟtors of Schneider for this parƟcular market segment are ABB, Invensys plc, Siemens AG,
Honeywell Process SoluƟons, etc.
In the macro industry analysis, the environmental factors that are relevant to this analysis are market size, growth, mega trends, demographic trends, macro-economic trends and technological trends
(Exhibit 1). Growing demographic populaƟon promises sustainable growth through infrastructure growth. The need for energy, electricity and food drives long-term secure industry investments in emerging markets mainly. One of the other evolving trends that is a major concern for Schneider is the evolving customer buying behavior which is tectonically shiŌing from piece-part products to more integrated soluƟons capability. The impact of this shiŌ on Schneider is long-term loos of market share as it’s compeƟtors are well poised to capitalize and leverage this market shiŌ. Secondly, the cyclical and uncertain growth paƩern is forcing automaƟon