The directions of LUG S.A. Capital Group development in 2013 and subsequent years are presented in the development strategy, which was delivered on 09.04.2013r.
Strategic goal of LUG S.A. Capital Group for the years 2013-2016: development based on the rules of energy efficiency and reduced CO2 emissions.
This overall goal will be achieved through intermediate objectives in five basic areas:
Technology
There are two priorities established in the “Technology” area, which shall determine development of the company in the years 2013-2016. The first of these concerned the expansion of the existing factory and launching a new production line for SMD assembly. The investment was completed in 2013 and its total cost was PLN 2,19 million. The second priority refers to construction of the new production plant. The first stage of the investment, namely construction of the production and warehousing part, is planned for 2014. The second stage comprises construction of the administrative facilities.
Product
The key product in development of the LUG S.A. Capital Group will be lighting fixtures and systems based on the LED technology. Further development of the LED products will constitute an implementation priority of the R&D Department. Their share in the sales structure in 2016 should reach at least 40 percent.
and segments
Markets and segments
The strategic markets of the LUG S.A. Capital Group are divided into the following areas: Poland, Europe, Russia and Brazil. Development impulses in the lighting sector, identified by the Management Board of LUG S.A. enabled adopting the following objectives: an increase in consolidated revenues from exports at the level of 100 per cent and an increase in consolidated revenues from domestic sales at the level of 30 per cent by 2016. Besides, two additional objectives were set for the Brazilian subsidiary company: development of the sales structure and achieving the profitability threshold in 2014.
model
Business model
Aesthetic values of semiconductor lighting (LED and OLED) and nearly unlimited design freedom contribute to separation of new business and trade models. The model developed by the LUG S.A. Capital Group comprises consultation and sales centres functioning on the most promising markets of the Issuer’s activities, in particular: Germany, France, Great Britain, Middle East, Brazil, Russia and Poland. Competences developed in the consultation and sales centres will support the trend of departing from simple sales of fixtures and moving towards rendering comprehensive consultation and sales service.
R&D
The key role in this strategy will be played by the Development Department, Laboratory, Electronic and Flash DQ Departments, established on the strong foundations of lighting, electronic and design knowledge. The synergy of youth and experience combined with competences built by the team of employees, together with modern photo-optic and lighting technique tools, decide about competitive advantage of the Issuer. In 2013, the value of financial expenditures in this area reached PLN 2,39 million.
Another source of competitive advantage for LUG S.A. Capital Group will be the Flash DQ brand, whose advanced technology and sophisticated design will introduce the company to the market niche of unique-design fixture manufacturers. The brand’s share in the volume of sales on foreign markets has been planned at 30 percent, and on the Polish market at 10 percent by 2016.