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Built on a foundation of growth, competitiveness and commitment, Michelin’s strategic vision is designed to deliver strong, diversified growth by capturing the full value of its products and services in mature markets and expanding more quickly in new markets. As we continue to make our organization more competitive and cost-effective, the mutual commitment of the Company and its employees will enable us to successfully move forward together.
To serve real customer needs, Michelin is focusing on innovation and clearly differentiated products and services. Since inventing the removable tire in 1891, we have regularly kept one step ahead of the market in meeting the emerging expectations of customers and society alike. For more than twenty years, our innovation programs have been designed to deliver sustainable mobility solutions. We are currently the world’s leading manufacturer of fuel-effi cient tires and are spearheading the move towards a product-service system, which consists of selling a service rather than a product. For example, corporate customers can choose to be billed based on the number of kilometers traveled, the number of tonnes transported or the number of landings carried out using tires supplied and maintained by Michelin. Indeed, we enjoy a solid lead in this new services-based economy, where we plan to drive further expansion by delivering targeted solutions combining innovative products and services.
As illustrated by the worldwide advertising campaign conducted in 2010, the Group invests heavily in the MICHELIN brand, which expresses our quality and innovation. But while our growth strategy is underpinned by sales of MICHELIN-brand products and services, they are being enhanced by a multi-brand portfolio whenever necessary. Multiple brands enable us to serve retail networks that want to offer each customer just the right tire without leaving the Michelin Group brand universe. And because these brands are also designed to help us reach our profi tability targets, they will be initially focused on the fast growing segment of competitively priced tires for highperformance vehicles. The BFGOODRICH®, KLEBER, UNIROYAL, TIGAR, KORMORAN, RIKEN, TAURUS or WARRIOR brands will be used in their respective markets. Another growth driver is the steady improvement in market access. We are strengthening our integrated retail networks by acquiring new dealers and stepping up our franchising programs in every market. By 2015, we expect to have 1,000 Euromaster franchisees in Europe and 1,800 TyrePlus Centers in fast-growing markets, building on the current TyrePlus network of close to 1,000 outlets in nine countries.
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