Business model and strategies
A LINK BETWEEN CUSTOMERS AND SUPPLIERS
Addtech’s business model, or THE MINDSET as it is known in Addtech’s world, describes what action Addtech should take to meet core requirements and steer towards our vision. It comprises the business concept, business model, strategies and organisation.
Within the framework of the overall and central business concept there are a number of business concepts that describe the operations and conditions of each subsidiary. The common denominator of the subsidiaries’ business concepts is that they work with technology trading in selected niches.
In addition to operations that purely comprise technology trading in standard products, specially tailored solutions and/or sub-systems, Addtech sells products under its own brands and runs some niche production operations. Irrespective of whether the subsidiaries run technology trading or their own production operations, Addtech is a technology partner and specialist that helps its customers find the right supplier and the right technology. Technically complex products require sales representatives with technical expertise and in-depth understanding of customers’ business operations.
In order to serve our customers, we have strong suppliers who offer relevant products and systems. We obtain such suppliers by offering them the best market options for their products in our markets. Close cooperation with suppliers enables us to contribute our own expertise in order to tailor suppliers’ products and systems to customers’ needs.
In simple terms, you could say that we aim to add value to our customers in two ways: either by helping them to manufacture their products more efficiently, or by helping to make their products more competitive.
MARKET-LEADING POSITIONS
The subsidiaries set out to be market leaders and build positions in selected, clearly defined niches with a high knowledge and technology content and where customers demand carefully selected products, solutions and sub-systems often in small and medium-sized volumes. Being market leaders in selected niches is important to give us stable growth and lasting profitability.
OPERATING MOBILITY
Operating mobility is a term that permeates Addtech. As a strategy it means aiming to have extensive freedom to take action quickly. The subsidiaries should be flexible and agile so that they can harness new business opportunities. The growth potential of each subsidiary or product area must be nurtured, which means that constant changes take place within the organisation, in roughly the same way as in a plant nursery. A considerable focus is placed on identifying and nurturing the products and market areas with inherent growth potential.
GROWTH THROUGH ACQUISITIONS
Growth through acquisitions enables the company to expand to new market segments, obtain new agency companies and widen its range of niche products and services. The acquisitions aim to build an industrial company structure in which there is a connection between the various operations.
The added subsidiaries usually continue to operate under their own brands, but are imbued with Addtech’s mindset and soul. The strategy has meant that Addtech now comprises a large number of independent subsidiaries, operating in various types of markets and technologies, in which niche technology trading is the common denominator.
Addtech has a well-developed acquisition process that describes how to identify interesting companies and how newly acquired companies are managed following their implemented acquisition.