Philips and Avnet Announce Global Franchise Agreement
The announcement also represents the first element of a new distribution strategy for Philips Semiconductors. As part of this strategic global franchise agreement, Avnet will be authorized on a worldwide basis to market and sell semiconductors and advanced silicon systems from Philips Semiconductors. The two companies are developing strategic plans together that leverage best practices from around the world. The activities will include cooperative sales and marketing, global logistics initiatives and E-Business solutions designed to increase the levels of service the two companies can provide to customers throughout the world.
Avnet is currently a Philips Semiconductors distribution partner in North America, Europe and several countries in Asia. The new agreement extends the relationship on a global basis and offers benefits to the customers of both companies. As part of the global franchise agreement, both partners will support each other with a goal of achieving equally strong positions in all regions.
Customers of both companies that are expanding international operations will be able to take advantage of global programs that cross traditional regional boundaries. Avnet has been particularly strong with logic, discretes, and microcontroller products and will be building programs around other Philips Semiconductors core products such as communications and consumer ICs.
Philips Semiconductors is changing its sales model from a regional structure to a global market segment approach. Called "Going Global", the initiative represents a major step in the development of direct marketing and sales organization with a focus on relationship building, market-driven growth and world-class service levels.
Another core element involves significant emphasis on leveraging distribution. A new category of distribution is being created called Global Franchise Partners, the first of which is Avnet. Two other tiers include regional distributors and local or country-specific distributors. The Global Franchise Partners are established organizations that share a common view of current and future customer needs, and have the potential to work with Philips Semiconductors to expand the potential for advanced semiconductor and silicon solutions.