Cramo updates strategy
By Helen Wright12 September 2014
Finnish rental company Cramo has launched a new strategy for 2014 to 2016, including a specific action to target central Europe.
The company said it would drive its new strategy through three ‘must-win’ battles – delivering the Cramo story, driving Cramo’s performance management, and winning the central European market.
This compared to the company’s previous five-point strategy, which was outlined in its 2013 annual report - rolling out the Cramo rental concept, implementing Cramo processes, developing Cramo people, implementing Cramo performance management and driving profitable growth in modular spaces.
Cramo said the five previous strategy points had been “mostly accomplished”. In addition to the three new ‘must-win’ battles, Cramo also said growing its modular space business remained a key strategic initiative, as did dynamic pricing, acquisitions and outsourcing.
As far as the new focus on central Europe was concerned, Cramo said the idea was to capitalise on the potential in this region.
It said the performance of this region in 2013 did “not meet expectations” – central Europe represented 11% of group sales in 2013, and -1% of group earnings before interest, taxes, depreciation and amortisation.
Cramo said it wanted to increase central European input to group sales and profits.
It added that recent achievements from its modular space division in central Europe had been promising (including its acquisition of C/S RaumCenter).
Indeed, as well as organic growth, it said it was actively searching for more acquisitions in Germany and throughout the region.
The company added that the overall construction and rental outlook suggested stable growth for central Europe throughout the strategy period 2014 to 2016.
Meanwhile, modular space in general remained an important growth area for the group, according to Cramo, both within central Europe and throughout its operating area.
It said it aimed to continue to strengthen its position in this market in Norway and Denmark, and maintain its market-leading positions in Finland and Sweden.
In the Nordics region, Cramo said a limited number of acquisition targets had been identified, while in the Baltics region, Cramo said it wanted to drive "promising" modular space market development.
Cramo also said it wanted to implement its dynamic pricing strategy in all Nordic Countries by the fourth quarter of 2014, with the plan to launch in central Europe in 2015.
Cramo partnered with software company Zilliant, and is using its rate optimisation software to implement its dynamic pricing strategy. It said this increased its pricing control, as well as its confidence in its pricing structure through the use of a consistent methodology.