Three-pillar strategy
Wincor Nixdorf aims to keep on expanding its market position as one of the three leading international vendors of IT solutions for branch and store business of retailers and retail banks profitably and to win market share. Wincor Nixdorf’s strategy is based on three pillars:
- Expansion of core business and core competencies.
- Worldwide business expansion.
- Tapping new growth potentials.
Wincor Nixdorf has pursued this strategy from the outset. It is the guiding principle of our commercial actions and also the qualitative gauge of the company’s further development. By uncompromisingly implementing this strategy, Wincor Nixdorf has expanded its market position and continuously grown its sales and operating profit in the past years.
Business for bank branches and retail stores is the core business of Wincor Nixdorf. Wincor Nixdorf’s strength is in combining hardware with software and services and developing solution offerings that address the needs of the market and customers. All our solutions are based on open standards and integrate smoothly in our customers’ existing IT environments. Building on this competitive edge is a key objective of Wincor Nixdorf. The focus in this is on developing our own products, software and services and tapping further market potentials.
In the product arena, Wincor Nixdorf concentrates on self service, automation and electronic POS systems. The focus is on developing, producing and marketing innovative high-end solutions. We aim to establish ourselves as the premium vendor in this market by delivering innovative solution concepts. At the same time, Wincor Nixdorf has built up an international production network and standardized products and processes in order to cater for increasing customer demand at optimum cost and to reflect market requirements.
The share of sales generated by Wincor Nixdorf from solutions and services is to account for around 50% of total sales in the long term. The main growth driver here is global expansion of product services, outsourcing of complete self-service and store/branch networks and application software for integrating business processes or different delivery channels.
The core requirement of our customers is high availability of their systems and solutions, yet low costs over their entire service life.
In order to drive business with IT services, we are expanding our international resources in this field and enlarging our service network to optimize customer care and support. At the same time, we are continuously growing and updating our portfolio of services and also diversifying it to related sectors. For instance, we already provide IT services for terminal solutions in the lottery business and for reverse vending machines.
Wincor Nixdorf has grown strongly as a vendor of integrated services in the past years, above all in European countries outside Germany. Our goal is to keep on improving our global market position and work our way up from our current third spot to become the leader in our segments. The proportion of shipments of automated teller machines and EPOS systems is used as an indicator of our current market position. The medium-term objective is to strengthen our core business further in Europe and become the market leader in the region. We have already succeeded in doing that in retailing. In banking, we are the number 2 in Europe. Target markets for pushing our growth are Asia and America, with the focus on the U.S.
A key component in worldwide expansion is our global production concept. Our on-site production facilities means that we are very close to customers, especially in growth regions, and can serve them quickly and at optimized cost. In addition, we are able to address our customers’ specific requirements due the fact that we have expanded our customized development activities.
We tap further international growth potentials through our services business and by expanding our comprehensive service network. This is largely in place in Europe and will be enlarged in the regions of America and Asia.
We are also extending our range of services in order to tap additional growth potentials. Successful examples of this in the past fiscal year were our outsourcing activities in bank branch business and the success of our reverse vending machines in retailing. At the same time, we are applying our know-how from branch and store business in banking and retailing to smaller related sectors – lottery companies, service station and restaurant chains and postal organizations with large branch networks. We are tapping further growth potentials here, without neglecting the focus on our core business.