Full Annual Report - Inchcape

Business review
Strategy
Group Chief Executive’s
strategic review continued
Uniquely positioned for the future
I believe that the future for Inchcape, its
employees, brand partners and
shareholders is very exciting.
While we remain cautious about the timing
of the market recovery, we certainly believe
that no competitor is better placed than
Inchcape, both to weather any continuing
impact of the downturn and to grasp
the opportunities that recovery will bring.
We consider Inchcape to be uniquely
positioned worldwide to take advantage of
the global upturn for a number of reasons.
We are one of the most international of FTSE
350 listed retailers, having delivered 83% of
trading profit outside of the UK in the last six
years. Our diversified geographic portfolio
has scale businesses in 26 developed and
emerging markets and we are a leader in
14 of these.
Our resilient business model, with distribution
and retail channels,differentiating Customer
1st strategy and empowered management
has a proven track record.
Our portfolio of the world’s strongest
automotive brands consistently outperforms
the industry.
Our balance of revenue streams provides us
with both growth opportunities and recurring
aftermarket income.
Our leading, customer-centric operational
processes introduced with our Inchcape
Advantage programme,have improved our
competitive position globally.
Our competitive position has grown
stronger over the last year, both in terms
of customer service and market share,
providing us with an excellent growth
platform for the future.
We expect customer demand for greener
technology to drive vehicle replacement in
developed markets and we are partnered
with manufacturers committed to investing
in the newest technology and greener
vehicles. In the emerging markets, where
we have scale operations and the car
ownership levels are relatively low, the
increase in wealth will grow demand.
We believe consolidation of a fragmented
market to be inevitable. Inchcape will
benefit from increased market share and
the desire of manufacturers to seek new
retail or distribution partners with the
strongest companies.We have the financial
firepower to invest in the best strategic
opportunities to give us and our brand
partners access to markets with strong
future wealth and growth potential.
We outperformed the market in 2009.
I believe that we will continue to outperform
our competitors in 2010 and that Inchcape
is uniquely positioned worldwide to benefit
from the global market recovery in 2011
and beyond.
André Lacroix
Group Chief Executive
4
Uniquely
positioned
for the future
We are well placed
to take advantage of
the economic upturn.
Our unique business
model,long-standing
brand partner
relationships,diverse
geographic presence,
financial strength,
scale operations,
decentralised
and empowered
organisation are our
key strategic assets.
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Inchcape plc ¦ Annual Report and Accounts 2009