Introduction
Premier Farnell (Farnell) is a leading distributor of electrical and electronic components. In 2009, it acquired CadSoft, a publisher of computer-aided design (CAD) software. While sales of CadSoft products will in themselves contribute only a small amount to Farnell's revenues, the acquisition shows how Farnell and its rivals are competing on service as well as price.
Features and benefits
Highlights
Farnell is a leading high service technology distribution company, offering customers a wide range of electronic parts, with rapid order turnaround and no minimum purchase requirements.
Since 2006, Farnell has pursued a three-element strategy: to focus on electronic design engineer customers, extend its e-commerce activities, and expand its business in geographic growth markets such as Asia-Pacific.
Your key questions answered
Premier Farnell (Farnell) is a leading distributor of electrical and electronic components. In 2009, it acquired CadSoft, a publisher of computer-aided design (CAD) software. While sales of CadSoft products will in themselves contribute only a small amount to Farnell's revenues, the acquisition shows how Farnell and its rivals are competing on service as well as price.
Features and benefits
- MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
- Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.
Highlights
Farnell is a leading high service technology distribution company, offering customers a wide range of electronic parts, with rapid order turnaround and no minimum purchase requirements.
Since 2006, Farnell has pursued a three-element strategy: to focus on electronic design engineer customers, extend its e-commerce activities, and expand its business in geographic growth markets such as Asia-Pacific.
Your key questions answered
- What is a high service distributor?
- How has Farnell grown its business since 2006?
- Why did Farnell acquire a software publishing company?
OVERVIEW
Catalyst
Summary
ANALYSIS
Farnell is a leading high service technology distribution company
High service distribution involves rapid delivery of orders, many of which are for small quantities
High service distribution accounts for 9% of the total electronics distribution market
Since 2006, Farnell has pursued a three-element strategy
Strategic element 1: focus on EDE customers
Strategic element 2: develop e-commerce
Strategic element 3: build international business especially in Asia-Pacific
Farnell's strategy looks to be enhancing profitability
Farnell's revenues have been more stable than the semiconductor market and the EMS market
Electrocomponents showed similar 2001-2011 revenue growth, but weaker profit growth, than Farnell
CONCLUSIONS
Farnell's three-part strategy is leading to strong performance
APPENDIX
Definitions
Methodology
Further reading
Ask the analyst
About MarketLine
Disclaimer
Catalyst
Summary
ANALYSIS
Farnell is a leading high service technology distribution company
High service distribution involves rapid delivery of orders, many of which are for small quantities
High service distribution accounts for 9% of the total electronics distribution market
Since 2006, Farnell has pursued a three-element strategy
Strategic element 1: focus on EDE customers
Strategic element 2: develop e-commerce
Strategic element 3: build international business especially in Asia-Pacific
Farnell's strategy looks to be enhancing profitability
Farnell's revenues have been more stable than the semiconductor market and the EMS market
Electrocomponents showed similar 2001-2011 revenue growth, but weaker profit growth, than Farnell
CONCLUSIONS
Farnell's three-part strategy is leading to strong performance
APPENDIX
Definitions
Methodology
Further reading
Ask the analyst
About MarketLine
Disclaimer
