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IP Phones DORO
Doro 20062006 was a very troublesome year for Doro. Growth in Doro’s biggest product area, the market for cordless phones in Europe slowed down, while new environmental regulations were introduced. This consequentially led to major overcapacity in the industry with higher stock levels and continued strong price pressure.
We focused the business on the European consumer electronics market and significantly streamlined the organisation in 2006. As a result, we sold our subsidiary Upgrade Communication. Our marketing companies in Australia, Finland and Poland have been, or will be, replaced by a series of distributors. Staff cuts and selling off loss-making units will cut overheads by around 20 per cent.
We also carried out a number of measures during the year for Doro to improve the way it meets customers’ and suppliers’ demands for an effective and productive distribution chain partner. We built up solid expertise about consumers’ needs and collective behaviour and invested in further developing Doro’s products, both technically and with improved design in cooperation with world-renowned design companies.
Concentrating the business on the European market means that we will offer our products in future via major electronics chains, independent distributors and agents. To further improve our businesslike approach we have set up four business units – Home Electronics, Luba Sports Electronics, Business Electronics and Care Electronics. As a result, Doro’s skill centres will be concentrated in Lund and Paris.
A new, significantly stronger sales organisation was set up in 2006 to focus on considerably improving customer care with Key Account functions that work closely with our distributors. The Hong Kong office will be strengthened and expanded in 2007 to have better control over purchasing, product development, product quality and supplies from our subcontractors in Asia. The office moved to more modern premises at the Hong Kong Science & Technology Park during the year.
Over the year we reorganised the company’s financialbase for our business; Doro’s restructuring and investment in developing the range and new sales organisation has been made significantly easier through the new share issue and Nordea’s capital injection, which gave Doro a total of SEK 96 million.
To underpin Doro’s continued competitive strength in future, we are working on a comprehensive multi-stage strategy. The first is to focus the business and get to grips with profitability. The second is to underpin our competitive strength by extending our range and product portfolio and improving our customer and consumer orientation by focusing more clearly on our target groups. The third is to strengthen Doro’s partnership with European distributors and safeguard our long-term competitive size and position on the European consumer electronics market. I’ll give you further information about these strategically important issues later in 2007.
I would also like to thank all employees for their sterling work during 2006.
Looking forward to the coming quarters I predict a continued troublesome market situation for cordless phones and Doro’s continued expansion of the product portfolio is of major significance for the company’s continued development. Overall we are entering 2007 with lower volumes and facing a stiff, ongoing, competitive situation. A clear strategy, reduced working capital and lower overheads also give us less of a risk profile, but also a good opportunity to create a modern consumer electronics company over the long-term.
Wildix is a main distributore of DORO products in Italy, Spain and Ukraine
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