SEGRO Plc

Premium members report, featuring a concise PESTLE, Porters Five Forces, 5C, MOST, 7Ps, CATWOE and SWOT

This analysis of SEGRO Plc is part of our coverage of the world’s 10,000 largest companies.

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Company Description

Segro is a UK-based Real Estate Investment Trust (REIT) headquartered in Slough, England. Founded in 1920, Segro offers a range of products including commercial property, industrial, retail and logistics units. The company services a variety of markets, from traditional high street retailers to leading local and international e-commerce businesses. Segro's services are tailored to meet the needs of customers in the UK, Ireland, Poland, Czech Republic, Slovakia and Germany.

Industry Overview

The primary industry Segro operates in is real estate investment trusts (REITs), which is a USD 1.2 trillion global market with more than 10 million employees based in countries all over the world. Segro is a UK-based REIT that owns, develops and manages industrial and logistics property. It is one of the largest players in the industrial property sector in Europe, with a portfolio of £11.3 billion and a presence in nine European countries. It also has an expanding presence in the United States, covering 11 major markets.

Industry Classification

In terms of formal classification, Platform Executive has tagged Segro as a business operating within the Real Estate industry.

Major Products & Services

The main products and/or services commercialised by this business include:

  • Industrial and logistics space
  • Data centers
  • Land investments
  • Business parks
  • Retail parks
  • Office spaces
  • Residential areas
  • Hotels
  • Car parking
  • Car charging

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Competitive Landscape

Segro operates in a highly competitive environment, with numerous players vying for market share in the real estate and logistics industry. The market is characterised by intense rivalry, with competitors constantly seeking to expand their portfolios and attract new clients. This results in a high level of innovation and differentiation as companies strive to offer unique solutions to meet the changing needs of customers. With the rise of e-commerce and the demand for efficient logistics and warehouse solutions, competition is further intensified. Additionally, there are also new players entering the market, adding to the already crowded competitive landscape.

Key Competitors

We have identified the following organisations as being key competitors:

  • Prologis
  • British Land
  • Aviva Investors
  • Landsec
  • SEGRO Plc
  • Henderson Global Investors
  • AEW UK
  • LaSalle Investment Management
  • Multi Corporation
  • Hammerson Plc

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Key Stakeholders

Stakeholders are individuals or groups affected by a business's actions. Understanding their needs helps a business make decisions that benefit all parties.

Internal and external stakeholders include the following:

1. Customers: Segro customers include tenants, investors, developers, and corporate occupiers.

2. Shareholders: Segro’s shareholders are comprised of institutions, mutual funds, pension funds, and individuals.

3. Employees: Segro employees include its executive team, regional teams, and other professionals.

4. Suppliers: Segro works with a range of suppliers across the real estate and construction sectors.

5. Financial Institutions: Segro works with financial institutions such as banks and debt providers.

6. Local Communities: Segro is active in the communities in which it operates, engaging with stakeholders such as local authorities and charities.

7. Government: Segro works closely with the government to ensure it operates in accordance with the law and regulations.

8. The Environment: Segro is committed to sustainability and environmental stewardship.

Customers and Cohorts

The main customers of the organisation include:

  • Retailers
  • Industrial customers
  • Logistics customers
  • Commercial customers
  • Data centre customers
  • Office customers
  • Small business customers
  • Charities
  • Public sector customers
  • Professional services customers

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Diversified Portfolio: SEGRO Plc has a diversified portfolio with a wide range of properties in different sectors, from logistics to retail, office and industrial, which provides a wide range of opportunities for customers.

Financial Strength: Segro has a strong financial position, with a balance sheet that has been rated AA- by Standard & Poor's. This allows them to offer competitive terms on long-term leases and to invest in new developments.

Proven Expertise: Segro has a strong track record of delivering successful projects, with a well-established team of experienced professionals. This gives customers the assurance that their investments will be handled with care and skill.

Strong Relationships: Segro has long-standing relationships with many of the UK's major occupiers, which gives them access to a wide range of customers.

Network of Partners: Segro's network of partners allows them to provide comprehensive services to customers, from development and construction to financing and asset management.

Market Trends

Market trends can significantly impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and ultimately affecting the organisation’s ability to remain competitive in the market. Staying ahead of these trends enables businesses to proactively adapt their strategies, mitigate risks, and capitalise on emerging opportunities.

As part of this study, we have identified a number of potential trends that could impact the organisation. These include the following:

Market Trends

Key Performance Indicators

Key Performance Indicators
KPIs (Key Performance Indicators) are important to a business such as Segro as they help measure progress towards achieving organisational goals and objectives. They provide a useful insight into the performance of different areas of the Segro business and therefore enable informed decision-making.

KPIs also help to motivate employees towards achieving targets.

Below is a list of Key Performance Indicators we deem relevant to this company:

Brand Strength

Brand strength is more than a logo or name. It reflects a company’s reputation and how it is perceived by customers, investors, and employees. It is built on core values, mission, and a unique selling proposition (USP) that differentiates the business.

Brand strength goes beyond superficial elements and taps into core values, the defined mission, and unique selling proposition (USP) of a company.

Below are key reasons why brand strength matters:

Trust and Credibility: In a market flooded with choices, customers gravitate toward brands they trust. A strong brand signals reliability and quality, fostering customer loyalty. Loyal customers not only make repeat purchases but also advocate for the brand, driving word-of-mouth growth.

Brand Strength Analysis

Differentiation: A strong brand helps a company stand out in competitive markets by clearly communicating its value proposition. It creates a unique identity, establishes a competitive edge, and positions the company as a leader in its industry. For example, Google is synonymous with internet search.

Customer Loyalty: A positive brand experience builds emotional connections, making customers less price-sensitive and willing to pay a premium. Loyal customers generate repeat business and act as brand ambassadors, reducing customer acquisition costs and boosting long-term profitability.

Talent Acquisition and Retention: A strong brand not only attracts top talent but also enhances employee morale and engagement. Employees who identify with a reputable brand are more motivated, productive, and committed, driving better business outcomes.

Benchmarking Brand Strength

Below is a guide as to the scoring mechanism used to gauge the brand strength of this company:

A

The company enjoys an excellent level of brand strength.

  • This score signifies that the company has developed a highly regarded and well-recognised brand.
  • Customers and the wider community perceive the company as trustworthy, reliable, and superior to competitors.
  • The company enjoys a strong connection with customers, who actively engage with and advocate for the brand.
  • The company's brand effectively communicates its unique value proposition.
  • The corporate attracts and retains top talent, and its reputation extends beyond its target market.
B

The company has a good brand strength, indicating that it has a solid and respectable brand presence.

  • Customers generally have positive perceptions of the company.
  • While the company may not be as distinctive or well-known as the top brands, it still differentiates itself from competitors and enjoys a loyal customer base.
  • The brand inspires some level of customer engagement and advocacy.
  • The company attracts top quality employees and maintains a good reputation. People want to work there.
C

The business has an average brand strength, meaning it is neither strong nor weak in the marketplace.

  • Customers perceive the company as ordinary or run-of-the-mill, lacking an emotional connection or distinctiveness.
  • The company faces challenges in standing out among competitors and needs to better communicate its proposition.
  • Decent level of customer satisfaction, but significant there is room for improvement in terms of brand loyalty.
  • The company's reputation is neither a huge positive, or negative.
D

The company's brand is quite weak. Work required to increase its potential.

  • Customers have mixed or negative perception of the company, associating it with average or below-average quality.
  • The business struggles to differentiate itself from its competitors and lacks a compelling value proposition.
  • Customer engagement and brand loyalty may be minimal, requiring some effort to improve the brand experience.
  • The company's reputation may have encountered challenges, poor press, or may not be well-known in the market.
E

The company's brand is weak and fails to resonate with customers and audiences. This needs to be addressed.

  • Customers perceive the company as being too unreliable, lacking in quality, or irrelevant.
  • The company struggles to differentiate itself from competitors, and there is a lack of customer engagement, or loyalty.
  • The company's reputation may be tarnished or negatively perceived, hindering growth efforts.
  • Significant efforts are required to rebuild the corporate brand and establish a more positive image in the market.
F

The company has a severe lack of brand strength. It is a problem that needs addressing with urgency.

  • The company is poorly recognised, and customers have negative perceptions or zero awareness of its offerings.
  • The company fails to communicate its unique value proposition or inspire customer loyalty.
  • The company's reputation may be highly unfavourable, and attracting customers or top talent is challenging.
  • Immediate and extensive actions are likely necessary to revitalise the brand.

Brand Strength Score

Scoring brand strength is subjective because it relies on individual perceptions and interpretations of various factors, such as customer sentiment, market dynamics, and the competitive landscape, which can vary.

Using our scoring methodology, the average score of a business is calculated as being C (average). This differs from the average score of the top 10,000 businesses featured in our coverage. Weighted to that cohort, the average brand strength score increases to a B (good).

The analysis team have noted the following factors impacting its brand strength:

  • Large market presence: Segro is a FTSE 100 listed company and is one of the largest property companies in Europe, with a presence in the UK, Ireland, France, Poland, Slovakia and the Czech Republic.
  • High Brand Awareness: Segro is a well-known and widely recognised brand within the property industry, and its portfolio includes some of the biggest and most successful retail, office and industrial properties in Europe.
  • Reputation: Segro has a strong reputation for delivering high quality services to its customers, and has been recognised for its commitment to sustainability and corporate social responsibility.
  • Customer Satisfaction: Segro has a loyal customer base, with a high satisfaction rate due to its reliable and customer-focused approach.
  • Brand Strength Score: B

7Ps Marketing Analysis

The 7Ps of marketing are crucial components of strategic decision making for any organisation in any industry vertical.

Using the 7Ps in competitive analysis provides a holistic view of the marketplace, allowing businesses to refine their strategies, capitalise on competitors' weaknesses, and better meet consumer needs. The 7P's are defined as:

  • Product/Service
  • Price/Fee
  • Place/Access
  • Promotion
  • People
  • Physical Evidence
  • Processes

All these elements together frame an organisation's marketing mix, crucial for creating effective marketing strategies.

This 7P analysis is designed to provide a valuable insight into the business strategies of the company. It can be used to reveal strengths and weaknesses in their marketing mix, offering opportunities to compare and enhance a business.

1. Product/Services: Segro is a leading provider of industrial and logistics properties, offering a wide range of products and services to meet the needs of its clients. These include industrial, warehouse, and distribution facilities, as well as land for development. The company also provides value-added services such as property management, project management, and strategic advisory services.

2. Price/Fees: Segro adopts a flexible pricing strategy, tailored to the specific needs of its clients. The company offers competitive rates for its properties and services, taking into consideration the location, size, and amenities of each facility. Additionally, Segro offers flexible lease terms and payment options to cater to the diverse needs of its clients.

3. Place/Access: Segro has a global presence with properties located in key logistics hubs across Europe and the UK. This strategic placement ensures easy access to major transportation routes, such as ports, airports, and motorways, making it convenient for clients to transport their goods. The company also provides excellent on-site facilities and amenities to enhance the working environment for its clients.

4. Promotion: Segro utilises a variety of marketing channels to promote its properties and services, including online platforms, industry exhibitions, and targeted advertising. The company also leverages its strong brand reputation and customer referrals to attract new clients.

5. Physical Evidence: Segro's properties are strategically designed and well-maintained to meet the highest standards of quality and safety. The company's properties also feature modern and sustainable designs to meet the evolving needs of its clients.

6. Processes: Segro has a streamlined and efficient process for property leasing and management, ensuring a seamless experience for its clients. The company also invests in technology to improve its processes, such as online lease applications and tenant portals for easy communication.

7. People: Segro has a dedicated team of professionals who are committed to providing excellent customer service and maintaining strong relationships with clients. The company also offers training and development programs for its employees to ensure they have the skills and knowledge to meet the needs of its clients.

Potential Products

As part of this study, we have carefully examined and prognosticated a range of new products, services, or innovations that this organisation could potentially develop and introduce to strengthen its market position and respond to emerging industry trends.

Development consultancy services: SEGRO Plc could offer development consultancy services, such as project management, design, and planning services, to assist clients in the development of their properties and projects.

Construction services: Segro could offer construction services, such as earthworks, drainage, landscaping, concreting, and building works to help clients build their projects.

Property management services: Segro could offer property management services, such as rent collection, tenant management, and maintenance services, to help clients manage their properties and projects.

Logistics services: Segro could offer logistics services, such as transportation, warehousing, and distribution, to help clients move goods and services.

Investment services: Segro could offer investment services, such as asset management, portfolio management, and financial advice, to help clients make sound investments.

Security services: Segro could offer security services, such as risk assessment, surveillance, and personnel security, to help clients protect their properties and projects.

Potential Synergies

Our proprietary product and portfolio-matching algorithm has identified the following organisations as having strong potential synergies with the company, based on strategic alignment, complementary capabilities, and opportunities for collaboration across markets or domains.

1. Prologis
2. Knight Frank
3. CBRE
4. JLL
5. Savills
6. Network Rail
7. Thames Water
8. National Grid
9. Amey
10. BAM Construct UK

Porter's Five Forces

Developed by Michael Porter in 1979, Porter’s Five Forces is a model used to analyse industry attractiveness and evaluate competitive environments. It considers five forces:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries

We include this framework because it supports strategic planning, investment decision-making, and long-term competitive positioning across industries by highlighting structural pressures, market threats, and potential profit constraints.

Porter's Five Forces is a framework for analysing the competitive forces in an industry. The framework identifies five forces that shape competition:

1. Threat of new entrants;

2. Bargaining power of buyers;

3. Bargaining power of suppliers;

4. Threat of substitutes; and

5. Rivalry among existing competitors.Segro scores WELL in relation to the five forces. The company has a strong market position and faces little threat of new entrants. Additionally, Segro has good bargaining power with both buyers and suppliers. There is also little threat of substitutes. However, the company does face some rivalry from other existing competitors.

PESTLE Analysis

A PESTLE analysis is used to evaluate external factors affecting an organisation. It examines (1) Political; (2) Economic; (3) Social; (4) Technological; (5) Legal; and (6) Environmental influences. This framework helps businesses identify potential risks and opportunities in the macro-environment, supporting informed decision-making, strategic planning, and long-term sustainability in dynamic markets.

Reasons to use a PESTLE include:

  • Environmental Scanning: PESTLE helps assess external factors, keeping executives aware of key forces
  • Strategic Planning: It identifies opportunities and threats, aiding market alignment and goal-setting
  • Risk Assessment: PESTLE highlights risks, helping businesses develop mitigation strategies
  • Market Insights: It provides insights into trends, behavior, and regulations for better strategy development
  • Business Adaptation: Regular analysis allows businesses to stay competitive by adapting to changes

Below is the PESTLE analysis for this company:

PESTLE Analysis: political, economic, social, technological, legal, environmental

CATWOE Analysis

CATWOE

The CATWOE analysis helps businesses understand stakeholders' perspectives for informed decision-making, covering six elements:

  • Customers: Beneficiaries of the system’s outputs
  • Actors: Those who influence the system’s functionality
  • Transformation: Converting inputs into value-creating outputs
  • World View: The broader context behind the system’s existence
  • Owner: Decision-makers with authority over the system
  • Environment: External factors impacting the system

The CATWOE analysis is most effective when used alongside a SWOT analysis.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the SEGRO Plc business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis: strengths, weaknesses, opportunities, threats

Strengths

The strengths of a company refer to its internal attributes or capabilities that provide it with a competitive advantage.

Below is a list of the key strengths we have identified for the business:

1. SEGRO Plc is a leading real estate company with a strong focus on the industrial and logistics sector.

2. The company has a diversified portfolio of properties and a strong presence in key markets across Europe.

3. Segro has a strong track record of delivering growth and shareholder value.

4. The company has a experienced and entrepreneurial management team with a proven track record in the real estate sector.

Opportunities

Opportunities refer to factors that present potential avenues for growth, advantage, or improvement for an organisation.

Below is a list of opportunities we have identified for the business:

1. Increase Segro’s portfolio of logistics and industrial assets. Segro currently owns and manages over 8.4 million sqm of logistics and industrial space across Europe, with a focus on the UK and Germany. By expanding the portfolio, Segro could create more value for its shareholders.

2. Utilise technology to optimise operations. Segro has already begun to implement technology such as artificial intelligence, 3D printing, and robotics to improve operational efficiency. By continuing to invest in emerging technology, Segro could further streamline its operations and increase profitability.

3. Pursue strategic partnerships. Segro can leverage its extensive network of customers and investors to create strategic partnerships that offer mutual benefits. This could open up new markets and create opportunities for innovation and growth.

4. Strengthen its brand presence. Segro has built a strong reputation in the logistics and industrial industry, but it could be further leveraged to create a stronger brand presence. This could include expanding its digital presence, developing more innovative campaigns, and creating content that resonates with its target audience.

Weaknesses

The weaknesses refer to factors that hinder a company's performance or competitive advantage.

Below is a list of the weaknesses we have identified for the business:

1. Lack of focus: SEGRO Plc has a portfolio of over 100 properties, which span across 11 countries and 3 continents. This lack of focus has led to inefficiencies in the management of its portfolio and has resulted in higher than average vacancy rates.

2. High leverage: As of December 31, 2016, Segro had €4.3 billion of net debt, representing a leverage ratio of 50%. This high leverage leaves the company vulnerable to economic downturns and has resulted in higher interest expense.

3. Dependence on the UK market: Approximately 60% of Segro’s revenue is generated from the UK market. This dependence exposes the company to risks associated with the UK economy, such as Brexit.

4. High Capex requirements: Segro’s business model is capital intensive, with the company requiring significant levels of investment to acquire and develop new properties. This has led to high levels of debt and has put pressure on the company’s cash flow.

Threats

The threats to an organisation refer to factors that pose challenges or risks to a company's success.

Below is a list of the threats we have identified for the business:

1. Market volatility: SEGRO Plc operates in a highly competitive market with changing customer needs and preferences. This can lead to fluctuations in demand and supply, impacting profitability and the overall performance of the business.

2. Increasing competition: Segro faces intense competition from other companies offering similar products and services. This can lead to price wars, reduced margins and a decrease in market share.

3. Regulatory uncertainty: Segro is subject to a variety of regulations, which can change from time to time. Unpredictable or inadequate legislation can impact the company’s ability to operate efficiently and make a profit.

4. Cybersecurity threats: As a business that stores customer data, Segro is vulnerable to cybersecurity threats such as malware, data theft and hacking. These threats can have a significant impact on the company’s reputation, leading to financial losses and a damaged brand.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for SEGRO Plc. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Segro, as well as areas where the company needs to improve its operations or strategy.
Company: SEGRO Plc is a real estate investment trust company that specialises in the development and management of industrial, retail and logistics properties. It is based in the UK and has a presence in seven countries in Europe.

Collaborators: Segro works with a variety of partners, such as developers and occupiers, to create and manage its properties. It also works with local authorities, government and other stakeholders to ensure the best outcomes for its projects.

Customers: Segro's customers are those who purchase and rent properties from the company. This includes both businesses and individuals, as well as those who purchase properties for investment purposes.

Competitors: Segro's main competitors are other real estate investment trusts, such as British Land, Land Securities, and Hammerson.

Content: Segro's content includes a range of information about its services, properties, and other activities. This includes details on its portfolio, projects, and sustainability initiatives. Additionally, the company has an extensive blog and social media presence, as well as a website with a range of resources and news.
5C Analysis: company, customers, competition, collaboration, climate

MOST Analysis

MOST Analysis: mission, objectives, strategy, tactics

The MOST analysis framework is used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. The MOST analysis helps executives focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles.

  • Mission defines the organisations purpose and core values, providing a clear direction and inspiration for stakeholders
  • Objectives are specific, measurable targets that support the mission; they indicate what the organisation aims to achieve within a defined timeframe
  • Strategy outlines the high-level approach the organisation will undertake to reach its objectives, detailing how resources will be allocated and initiatives prioritised
  • Tactics are the actionable steps and specific plans that implement the strategy, ensuring that all team members understand their roles in achieving objectives

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

The team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism designed to benchmark innovation.

First, we allocate a score of A-E for the industry, based on the key organisations operating within the space; and then score the individual organisation using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Innovation Scorecard

Industry Score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company Score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged SEGRO Plc as having an innovation score of C2.

Appendices

The appendices section of this report contains supplementary information that we deem helpful in providing a more comprehensive understanding of the report.

Methodology

This study on Segro forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Reading

More Information

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Disclaimer

All Rights Reserved.

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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