Our strategy has set the course for high profitability for many years. We stand firm in this successful approach rooted in a long-term perspective in which growth and profitability must always go hand in hand.
Focus on profitable growth
Our Group companies are not developed with a view to a future exit. Instead, the goal is to create successful groups of companies with industrially sound structures, in which there is high growth and profitability over time.
To achieve our objective of profitable growth, our approach to business must also be responsible. Accordingly, we conduct sustainability work designed to restrict the Group’s environmental impact and offer employees a safe and stimulating work environment. It is equally important that our customers, suppliers and business partners associate Beijer Alma with a sense of credibility and sound values.
We work closely with our Group companies to assist them in setting and following up on goals and exercising long-term control. This work does not generally involve operational activities, but instead focuses on strategic development, acquisitions and investments. This provides our companies with access to management resources that are often lacking in medium-sized companies.
A large portion of the Group companies’ products and services are adapted to meet specific customer needs. Offering products and services that are unique creates higher value, for which customers are prepared to pay. In turn, this contributes to a positive development in terms of our profitability. As opposed to standardized volume products, unique product concepts also provide greater leverage in sales and marketing, such as us being able to compete with other forms of added value than simply price.
Our production companies largely focus on niche products, which are manufactured in relatively small series and generate higher customer value. The total market for this type of product is limited. To be able to expand and create growth, the companies must therefore link their offerings to broad international sales.
We want to have strong market positions and we achieve this by us offering high quality, a broad product range, extensive customization and a high level of service. This strategy also allows our Group companies to compete using other forms of added value than merely low prices, which creates the scope for a stronger profitability trend.
Our companies aim to have a broad customer and supplier base. This breadth creates scope for action and reduces risk exposure and dependence on individual markets, industries and companies.
We grow organically through investments in product and market development in the Group companies. Experience shows that such investments in growth often result in higher profitability and limited risk. Moreover, this work can be carried out in our existing organizations and be focused on markets and products we know well.
Corporate acquisitions include supplementary acquisitions in Group companies and the establishment of entirely new operations. Supplementary acquisitions can strengthen our position in selected markets or in specific technology or product areas. These types of acquisitions also carry a lower risk since they are conducted in familiar markets or areas.
When the various parts of our strategy are brought together, we are able to focus on our shared final goal – profitable growth that is also sustainable. Our efforts to meet our four growth criteria – high customer value, international market coverage, strong market position and a diversified customer and supplier base – play a crucial role in allowing us to meet this goal. Other parts of the strategy enable us to advance our positions in these areas in various ways.