Plantronics 2015 Annual Report Download - page 17

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We believe the principal factors to be successful and competitive in each of the markets we serve are as follows:
• Our understanding of emerging trends and new communication technologies, such as UC, and our ability to react quickly
to the opportunities they provide
• Alliances and integration/compatibility with major UC vendors
• Our ability to design, manufacture, and sell products that deliver on performance, style, comfort, features, sound quality,
simplicity, price, and reliability
• Maintenance of our brand name recognition and reputation
• Superior global customer service, support, and warranty terms
• Effective and efficient global distribution channels that allow us to market and sell our solutions
• Increasing global reach
We believe that our products and strategy enable us to compete based on these factors.
RESEARCH AND DEVELOPMENT
We believe the future success of our business depends upon our ability to enhance our existing products, develop compelling new
and cost-effective products, have our products qualified by our technology partners and customers, successfully introduce these
products to existing and new markets on a timely basis, and to commence and sustain volume production to meet customer demands.
During fiscal year 2015, we developed and introduced innovative products that enabled us to better address changing customer
demands and emerging trends. Our goal is to bring the right products to customers at the right time and have best-in-class
development processes.
In fiscal year 2016, we will continue to focus our core research and development efforts on UC, which will require incremental
investments in firmware and software engineering to enhance the broad compatibility of our products with the enterprise systems
into which they will be deployed and to develop value-added software applications for business users. The products we are
developing require significant technological knowledge, speed to market, and might be protected by intellectual property rights.
Separately or together, this technological knowledge and our intellectual property gives us a competitive advantage. We are
continually striving to improve the efficiency of our development processes through, among other things, strategic architecting,
common platforms, and increased use of software and test tools.
The success of our new product introductions is dependent on a number of factors, including appropriate new product selection,
timely completion and introduction, cost-effective manufacturing, quality, acceptance of new technologies, and general market
acceptance. See further discussion regarding our business risks associated with our manufacturers under the risk titled, "Our
business will be materially adversely affected if we are unable to develop, manufacture, and market new products in response to
changing customer requirements and new technologies" within Item 1A Risk Factors in this Form 10-K.
During fiscal years 2015, 2014, and 2013, we incurred approximately $91.6 million, $84.8 million, and $80.4 million, respectively,
in research, development, and engineering expenses. Historically, we have conducted most of our research, development, and
engineering with an in-house staff and the limited use of contractors. Key locations for our research, development, and engineering
staff are in the U.S., Mexico, China, the Netherlands, and the United Kingdom.
SALES AND DISTRIBUTION
We maintain a worldwide sales force to provide ongoing customer support and service globally. To support our customers' needs,
we have a well-established, multi-level distribution network in North America, Europe, and in some parts of the Asia Pacific region
where use of our products is widespread. Our distribution channels in other regions are less mature, and while we primarily serve
the Enterprise market in those regions, we are expanding into the Consumer market in those locations.
Our global commercial distributors include technology and electronics distributors, and national and regional resellers. The
resellers typically offer a wide variety of products from multiple vendors to both other resellers and end users. Our commercial
distribution channel generally maintains inventory of our products. Our distribution of specialty products includes distributors,
retail, government programs, and health care professionals.
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