Schneider Electric

Five’s Porter forces :

Competitors: The process automation market is controlled by three solution providers: ABB, Emerson Process Management and Honeywell Process solutions. There are also on the market, others competitors like: Siemens AG, Legrand Holding SA, General Electric Company and Johnson Controls. This market is still maturing; however it is very competitive but constantly research new sources of growth.

Potential Entrants: There are few new entrants in this market. Indeed, the barrier to entry as the development of platform of technology automation within 5-10 years is difficult to achieve. Hence, inorganic growth mode is the most preferred way to establish growth.

Suppliers: In this market the competition come from a large amount of service suppliers who are called “system integrators”. These companies seek to move up the value-chain, and leveraging local presence and support capability with customers.

Costumers: Schneider send very few to end consumers, but use the intermediaries who diffuse the products on the market. The main customers of Schneider electric are distributors, panel builders, installers’ manufacturers of machinery and equipment, energy companies and its key accounts.

Distributors of electrical equipment account for more than 50 % of total group sales and 70% of the cataloged offer. They are spread over 15,000 points-of-sale worldwide.

Panel builders make and sell electrical distribution or control systems, mainly for building markets, energy and infrastructure. Their main customers are installers.

The installers develop solutions specific to the needs of end users.

Key accounts are customers who chose Schneider Electric as its partner. Today Schneider Electric deals with more than 70 key accounts.

Threat of substitutes: No major threat from substitutes. It will continue to be usual partner for automation companies.

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