Ericsson CEO Hans Vestberg will announce its long term strategy today.
This is for the first time that Ericsson will give an overview of Ericsson’s longer term strategy, beyond 2015.
As part of the presentation, Vestberg will describe key priorities for 2014 for achieving profitable growth combined with continued focus on cost and efficiency, and strengthened commercial excellence.
Key ingredients in this plan include monetizing the investments in footprint that the company has established in Europe, continued structural improvements to shorten order-to-cash cycle time, and to evolve the infrastructure software model to fit an ICT environment, said Ericsson in a statement today.
“Looking at sales growth in a longer perspective, it is encouraging to see that we grew twice as fast as the market in 2010-2012, currency adjusted. This is proof that our strategy is effective and that we are delivering real value to our customers,” Vestberg said.
Looking beyond 2015, Ericsson, which competes with NSN, Huawei, Alcatel-Lucent, ZTE, etc. will leverage its core assets: the combined strength of its technology and services leadership and its global scale, which enables investment decisions in targeted areas for growth, such as IP, OSS, BSS, TV & Media, and Modems.
Ericsson will also present a market outlook for 2012-2016. Steady growth is expected across all areas with no major changes in figures for the main compound annual growth rates (CAGR), compared with last year.
Ericsson estimates that the total network equipment market will show a CAGR of 3-5 percent; telecom services is estimated to show a CAGR of 5-7 percent; and the market for support solutions is forecasted to show a CAGR of 9-11 percent.