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Philips maintains a detailed relationship with its Worldwide Key Accounts Managers which allows us to drive our efficiency via empowerment, sooner choice-making and improved productivity. We’ve got devoted gross sales and advertising and marketing teams all through Europe who supply an unparalleled expertise that is tailored to every particular person country. We’ve the expertise and logistical know-learn how to allow native activation campaigns and we provide an infrastructure to arrange local promotions with native point-of-sales tools for each specific nation.
Considering these disparate pressures on costs, there isn’t any easy system that OEMs or suppliers can use to improve their return on capital. The answer will seemingly come from a mix of actions. A part of the reply lies in consolidation, which reduces trade capital requirements by eliminating competitors and mixing two manufacturing and design footprints into one. To a degree, these goals explain 2016’s strong supplier M&A quantity, continuing the trend of the previous yr’s file deal value, in line with PwC’s International Automotive M&A Offers Insights 12 months-finish 2016 report.
Taken as a complete, innovation-associated challenges are reshaping traditional auto industry constructions and relationships — specifically, by threatening the existing distribution of earnings and the boundaries between OEMs and Tier One or Tier Two suppliers, as well as between automotive and tech firms. Some suppliers will fold, as their business goes away fully, and others will struggle as a result of modifications in technology content material will deliver OEMs or non-automotive suppliers into their markets as new rivals. Decisions about investments and industry alliances which might be being made now will decide the dominant positions of tomorrow.