Carphone Warehouse 2014 Annual Report Download - page 16

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Carphone Warehouse Group plc
Annual Report 2014
14
STRATEGIC REPORT
Business model
SIMPLIFYING
For 25 years we have been offering the best choice, advice, price and support for
our customers. Our retailing, systems and process expertise provides a strong
platform for growth.
CPW is committed to prioritising long-term value creation forshareholders.
COMPLEX TECHNOLOGY FOR
CUSTOMERS AND BUSINESSES
+Experts in our field
+Unique systems and core
capabilities that are
difficult to imitate
+Committed to investing
in ourpeople
+Driven, entrepreneurial
management team
+Optimalsupplier terms
+Ability to leverage
existing cost base
andexplore new
opportunities at home
and abroad, in turn
drivingscale
HOW WE ADD VALUE
+Partnering with device
manufacturers and
majornetworks
+Creating ongoing
mutual economic
benefits
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LONG-TERM APPROACH TO
CREATE SHAREHOLDER VALUE
Over the past  years, we have built the largest independent
telecommunications retailer in Europe, attracting consumers and
businesses looking for simple, impartial, expert advice about the
complexities of mobile technology. Our long-standing purpose
istohelp customers understand technology.
Our long-term approach to investing creates a sustainable
opportunity to continue to add value for a wide range of stakeholders,
from our customers, through employees, communities, suppliers,
partners, and fundamentally, for our shareholders.
UNIQUE RETAILER WITH
PLATFORM FOR GROWTH
CPW has an unusual revenue model compared to traditional retailers.
A significant proportion of our revenue is derived from MNOs, for
delivering new customers and upgrades. The business generally
receives a share of future customer revenues, and/or commissions,
which are typically used to subsidise the sales values of a range of
connected devices. Other revenue streams include value-enhancing
products such as accessories, insurance and assurance products.
Adapting to changing market dynamics, CPW has realised the potential
to grow new revenue streams by leveraging its unique relationships,
core systems and expertise to provide a range of managed services to
businesses, including MNOs, other service providers and manufacturers.
CUSTOMER
PROPOSITION
+Committed to delivering value
forourcustomers
+Independent, impartial, expert advice
+Widest choice of devices, connections
andservices
+Truly multi-channel offering
+Subsidised and
innovativepropositions
+Trusted brand