Our strategy

Smith & Nephew’s strategic priorities are about making choices for the long term benefit of the Group, delivering higher returns to shareholders than its peer group.

1. Established markets

In Established markets (US, Europe, Japan, Australia, New Zealand and Canada), Smith & Nephew sees opportunities to build upon existing strong positions, to win market share through greater innovation and drive efficiencies to liberate resources. Through these actions the Group seeks to meet the challenges of subdued markets and maximise both revenue growth and profit margins.

2. Emerging and International markets

Smith & Nephew believes it can secure market leadership in the Emerging markets, building upon its initial success in China and expanding to create sustainable businesses in India, Brazil and Russia. In particular, the Group sees significant opportunities to build value through augmenting its existing portfolio with new products specifically designed for, and manufactured in, these markets.

3. Innovate for value

The Group’s future success depends upon continuing to offer new technologies and innovative business models to customers around the world. Smith & Nephew is accelerating its rate of  innovation by increasing the research & development budget and identifying and investing in the projects that will deliver maximum value.

4. Simplify and improve our operating model

Smith & Nephew will work to ensure the business structure and processes support our innovation agenda, and the Group seeks to maximise efficiency in everything it does. There are opportunities to streamline the Group’s operations and manufacturing processes and to remove duplication. Smith & Nephew is building strong global functions – human capital, regulatory, quality, compliance, sustainability, finance and legal affairs – to support its management teams in their quest to serve the Group’s markets and customers better.

5. Supplement organic growth through acquisitions

The Group aims to augment its organic growth through acquisitions. Smith & Nephew will continue with its successful strategy of acquiring complementary technologies, seek to support our Emerging markets ambitions by acquiring local manufacturing and distribution businesses and remain alert to larger opportunities to support expansion in attractive sectors, such as advanced woundcare, extremities or minimally invasive surgery.

Read more about how Smith & Nephew create sustainable value

   Download "Strategy and performance" from our Annual Report 2012