Group Strategy & Strategic Cornerstones - Trelleborg AB

Group Strategy &  Strategic Cornerstones

Trelleborg’s strategy of securing leading positions in selected segments is supported by four strategic cornerstones. These ensure that all levels within the Group maintain focus and conduct activities that are in line with the strategy.
These are the cornerstones that Trelleborg works with Group-wide and in the business areas to optimize its respective operations and, thereby, capture market leadership. The cornerstones support the strategy individually and in combination.

Geographic balance
Trelleborg bases its offering on local presence and global reach.

Geographic balance. In recent years, Trelleborg has prioritized strengthening its market presence in selected markets outside Western Europe and North America tofurther improve the geographic balance.

The principal drivers include proximity to customers in expanding and profitable segments, following them in their globalization processes and developing local customer relationships, which may become global. Trelleborg’s long-term ambition is to achieve a geographic balance, where Western Europe and the Rest of the World each account for an expected 40 percent of the Group’s sales, while the remaining share is expected to continue being generated in North America.

However, the European and North American markets remain important for Trelleborg. The Group both acquires and invests in these geographic areas when it strengthens the total Group.

Portfolio optimization
Trelleborg is pursuing growth initiatives in several areas and on different levels.

Correctly positioned business. The Group pursues, based on the strategy to secure leading positions in selected segments, focused systematic activities involving a number of growth initiatives on several levels and in different areas.

The portfolio is being continuously reviewed to assess how the Group can continue to improve its positions in the selected segments. The rate of investment is, therefore, high as is the pace of development for new products and solutions.

Initiatives can be launched in several dimensions. They may concern the expansion into new segments, niches or product categories, or to new geographic areas. The customer segments in which the Group operates is another dimension, as are the aspects of its presence in mature and growing markets.

Structural improvements
Trelleborg focuses on being in the right location with the right operations with the right business model.

Right place for right business with the right business model. The globalization of Trelleborg’s business involves being in the right location with the right operations. The focus is on developing operations and localizing them to areas where Trelleborg can grow and recruit the right talent and do the best job. In certain cases, this means that Trelleborg moves an operation to another geographic market; in other cases, it means upgrading and developing the operation where it is.

Trelleborg endeavors to maintain an exposure toward market segments that as a whole have a favorable balance between early and late cyclical industry, meaning general as well as capital-intensive industry, the demands from which often balance each other out. In this way, the Group’s risks are spread during adverse cyclical fluctuations in individual segments.

Trelleborg invests in attractive market segments and ensures optimal market presence as well as an effective and competitive business structure. This includes developing offerings that make life easier and increase value for customers but also developing and working within new business models.

Trelleborg also invests in new technology and machinery, human capital, international management, local managers and development of local markets, all with the aim of improving and honing its structure. 

Excellence
Trelleborg works systematically with improvement activities.

Trelleborg works proactively and systematically to further optimize the core processes: purchasing, production and sales, where the supply chain is a common thread through all these elements. Starting in 2019, People Excellence will be added as part of Trelleborg Excellence.

The long-term aim of the Excellence programs is to boost value generation for Trelleborg’s customers through systematic work with tools, training, exchange of experience and other improvement activities at all units.