Vectron Systems AG

Vectron Systems AG
On the basis of the current R&D and production capacities, Vectron intends to
introduce one or two new product innovations per fiscal year. After the introduction
of new mobile and hybrid devices over the last year, Vectron aims to streamline its
entire product portfolio of stationary devices until 2010.
Given the high degree of market saturation in its underlying markets, the expansion
of product portfolio into new niche segments and price categories is in our opinion
the right approach to achieve higher revenues in its existing markets. In a highly
fragmented market, Vectron will be able to monetize on its leading technological
position and sound financial background by squeezing out the small local
competitors. Overall, Vectron is in a favourable position expand its market share
over the next years.
International business expansion
Along with higher revenues in its existing markets, the company´s international
business is expected to become a significant revenue pillar in the future. Currently,
Vectron still generates the main proportion of its revenues in German speaking
countries and the Benelux region. However, the company is forcing its
internationalization and pursues a pan-European expansion strategy. As a first step
Vectron intends to establish its business model in France, Spain and UK. In doing
so, the company aims to achieve a significant market position in these countries
before tapping new geographic market.
Vectron intends to become a leading European market player in the mid-term. In
pursuing this goal the main obstacle, which Vectron has to overcome, will be the
implementation of an appropriate distribution network even though the company
has already authorized dealers and resellers in some of its targeted markets.
In order to realize its pan-European business ambitions, Vectron aims to expand
the number of its international distribution partners by a large number over the next
years. Therefore, the company has already added sales resources in order to
acquire international distribution partners with strong selling power. Overall,
Vectron is in a favourable position to achieve this objective since it can materialise
on its leading technological position as well as on its longstanding experience and
sophisticated products.
Distribution and Marketing
The company´s future success will depend on a high degree on its capability to
materialise on its strong technological expertise by commercializing its
sophisticated products in an economically effective manner. In the past, Vectron
had a strong emphasis on the technological side of the business, but intends to
improve its distribution and marketing activities in the future. Particularly the
establishment of an appropriate international distribution network is crucial to
Vectron´s future business success. Overall, the company aims to achieve better
product awareness with its distribution and marketing activities
As result of its past customer emphasis on SMEs, Vectron implemented an indirect
distribution strategy via authorized dealers and resellers. In the future, the
company intends to tighten its relationships to its distribution partners and increase
the number of exclusive dealers distributing only Vectron`s POS Systems.
www.cbseydlerresearch.ag
Promising strategy in a
saturated market
Monetizing on
potentials in untapped
geographic markets
Mid-term objective:
Leading European player
Expansion of the number
of international
distribution partners
Goal: improved product
awareness via...
...improved relations to
distribution partners,...
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