Carphone Warehouse 2007 Annual Report Download - page 12

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2007Performance UpdateOur Strategy
The Carphone Warehouse Group PLC Annual Report 2007
8
OUR VIRTUOUS CIRCLE OF PERFORMANCE
Investment
Our long-term approach to investment creates sustainable competitive
advantage in our chosen markets. Investment is not just about
capex – although our commitment to store openings and exchange
unbundling is significant – it is also about marketing, brand-building
and customer recruitment.
Scale
We aim to be a mass market provider in our major business lines by
driving for volume ahead of margin. We then use our increased
presence in the market to improve our supplier terms and reinvest
these benefits in the customer proposition.
Efficiency
Scale also creates significant efficiencies for our business, through
leveraging our fixed cost store base and telecoms infrastructure. We
seek to maintain our competitive advantage by continued investment
across the business.
Proposition
We are absolutely committed to delivering value to customers across
all our services. Investment in the right platforms is key to our ability to
develop a compelling customer proposition, as it allows us to build
scale, and offer greater value and an improved customer experience.
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OUR OPERATIONS WHAT WE SAID WE’D DO IN 2006/07
Retail and Online • Open a further 250 new stores
• Differentiate proposition through
handset range
• Continue to drive growth in
subscription connections
• Continue to explore non-UK
Online opportunities
Insurance • Further base growth
• Improve penetration with
new products
Ongoing • Revenue growth of 15-20%
Distribution division
OUR OPERATIONS WHAT WE SAID WE’D DO IN 2006/07
Mobile –
Service Provision
• Further growth in
subscription base
• Stabilisation of ARPU trend
through focus on higher
quality channels
Mobile –
Other Operations
• Launch Mobile World in
other markets
• Refine Fresh proposition
to maximise customer
lifetime values
• Build towards target of 1m
Virgin Mobile customers
within 3 years
Fixed –
Business
• Focus on local loop unbundling
programme to hit target of
1,000 exchanges by May 2007
• Leverage LLU platform to build
corporate broadband products
• Build on initial TalkTalk
Business success
Fixed –
Residential
• Focus on rapid recruitment of
broadband customers
• Manage the successful
migration of customers onto
unbundled lines
• Complete integration of
Onetel acquisition
• Raise line rental penetration on
voice customer base to 60%
Telecoms Services division