ST Hangs Future Growth on ‘Mass Market’ & Distribution
STMicroelectronics NV is deepening its engagement with distribution partners worldwide and moving to diversify its revenue base by expanding sales into what executives at the company describe as the “mass market.”
This strategy is one of a series of actions being taken by ST to improve sales and profit growth and stabilize revenue generation, according to a senior executive with the Geneva-based chipmaker.
In the last one year ST has redefined its growth strategy to focus on improving sales generation at small to medium-size companies in response to challenges at many of the company’s historically biggest accounts – especially in Europe – many of which are struggling with structural market changes and competitive stress from rivals on the continent and from Asia. The “mass market” business, featuring opportunities spread across all segments of the economy, represents one of the brightest performing sectors within ST and is critical to its future goals of reversing year-over-year sales declines.