Efficient operational control, corporate social responsibility and long-term ownership pave the way for value creation in Beijer Alma. This strategy combines high customer value, international sales and strong market positions with a diversified customer and supplier base.

Trading and manufacturing with a focus on industrial customers Beijer Alma focuses on component manufacturing and industrial trading. The emphasis in both cases is on industrial products, meaning professional buyers who make rational decisions regarding the procurement of products and services.

Compared with manufacturing companies, trading companies are generally less complex. The companies do not conduct research or development and have no proprietary production capacity. A trading company is more easily able to alter its product portfolio by taking in new products or agencies if demand changes.

At the same time, gross margins are often lower for trading companies than for manufacturers. This also results in a slower volume-gearing effect on profit since trading companies cannot create the same degree of leverage as manufacturing companies when demand increases.

Manufacturing companies are more complex. Risks include the possibility that rapid technological shifts could reduce demand for the company’s products. Adapting operations to the new conditions can also be complicated. At the same time, manufacturing companies have a greater ability to control their market strategies. Gross margins in such companies also tend to be relatively high. By adapting their production processes profit gearing can therefore be substantial when demand gains momentum.

Long-term ownership
The concept of a long-term approach is key to Beijer Alma’s ownership strategy. The Group companies are not developed with the aim of a future exit. Instead, the goal is to create groups of companies with industrially sound structures that achieve long-term success and in which sales and profitability grow over time.

Corporate social responsibility
To achieve our long-term objective of profitable growth, we must assume a corporate social responsibility approach, whereby we strive to limit our impact on the environment and offer a secure and stimulating work environment for our employees worldwide. It is equally important that Beijer Alma be associated with credibility and healthy values in its contact with customers, suppliers and business partners.

Operational control
Beijer Alma works closely with the Group companies to set goals, follow up and exercise long-term control. These efforts generally do not involve operational activities, but instead focus on strategic development, acquisitions and investments, thereby providing the Group companies with access to management resources that small companies often lack.

High customer value
Most of the Group companies’ products and services are adapted to meet specific customer needs, which creates higher value for customers. As opposed to standardized volume products, unique concepts also provide greater maneuverability in sales and marketing.

International market coverage
The Group’s production companies primarily focus on niche products that are manufactured in small series and generate higher customer value. To achieve growth with this type of product, the companies must have broad international sales.

Strong market position
Quality, breadth of product range and a high level of customization enable strong market positions. This allows the Group companies to compete by offering other forms of added value in addition to low prices, enabling a more attractive profitability trend.

Diversified customer and supplier base
Beijer Alma strives to achieve a broad customer and supplier base, which reduces the Group’s risk and its dependency on individual geographic markets, industries and customers.

Organic growth
Organic growth requires continuous investments in product and market development. We prioritize this type of growth since it often generates high quality and low risk. Organic development also enables the existing organization to be utilized while focusing work on markets and products that are familiar to the Group.

Corporate acquisitions
Corporate acquisitions include completely new areas of operation, but also supplementary acquisitions in Group companies. Supplementary acquisitions strengthen the Group in selected markets or specific technology or product areas. The risk involved in supplementary acquisitions is also lower since these acquisitions are performed in familiar markets or areas.

Profitable growth
To create long-term, sustainable value growth for shareholders, Beijer Alma must focus on both growth and strong profitability. A business model that unites all of the strategic components that are described above – and illustrated in the strategy pyramid – also increases the probability of achieving this objective. Beijer Alma contributes strategic skills, business management and financial resources to drive profitable growth in the Group’s companies.