|| group kappa: a. lamprou, a. lazaridis, s. louziotis, c. paschou 08.08.2015group kappa: a....
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Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou
19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 1
The Economist: The lift business: Top floor, please
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People live and work more “vertically” than ever before
Trend towards urbanization Every year 70m. people move to cities worldwide By 2050 2/3 of world population will reside in cities Increase of 2.5 billion people 90% of the increase in Asia and Africa
19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 2
Lift: A continuous need
Source: 2014 Revision of the World Urbanization Prospects
Source: wikipedia
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New installations: From 300’000 10 years ago to 700’000 today, 67% of them in China
Market is moving east China, India, Turkey, Middle East
Europe 50% of lifts worldwide Maintenance Refurbishment
Double revenues by 2015
19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 3
Global Demand
Source: 2013 KONE estimations
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New installations 10% margin Not stable revenues - affected by economy’s fluctuations
Maintenance 25–35% margin ($2,000–5,000 a year) More stable revenues Contracts at the time of installation act as barriers for
newcomers Antitrust authoriries fine for fixing German & Benelux prices
Refurbishment … promising profits19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 4
The Business – What drives profits?
Source: BBC news magazine
Source: avenuestosuccess.com
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4 firms control the lion’s share 67% globally
In China growing competition from: Mitsubishi, Hitachi More than 500 Chinese local companies
Maintenance: Captive business in Europe and America: big companies China: local companies or not at all
Service business with lag for big companies
19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 5
Industry Competition
Logos’ source: companies’ websites
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Main Challenge: cost leadership cheaper production, larger margins Manufacture & R&D massively outsourced to Asia Global standardization
Economies of scale Sales of pricier offerings are on demand
Double-decker elevators Keycard elevators
Sustainability Speed & Comfort Space Saving
19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 6
Business Challenges – Trends
Source: http://sourceable.net/elevator-trends-technologies-transforming-tall-buildings/
Source: http://bestdesignews.com
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Customer’s perspective Little evolution Dominant design
Producer’s perspective: Significant additions that add value and differentiate from competitors but not great
breakthrough Patent war
Slows down evolution New inventions must be cheap(-er) cost leadership
19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 7
Lift Evolution
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Main Advantages: 80% less energy, no machine room, no danger of being trapped, 100% environmentally friendly
A small manufacturer (Mezolift) first introduced the solar lift for small houses (2011)
Big firms followed (e.g. Schindler in 2013) Rigid production process Cost issues
19.04.23Group Kappa: A. Lamprou, A. Lazaridis, S. Louziotis, C. Paschou 8
Case Study: Solar Lift
Source: http://elevatortoday.com/2012/10/13/mezolift-first-solar-elevator/, Schindler
Thank you!