Our strategic focus
We have revised our strategy in 2015 to better support our goals on the way forward. The strategy guides the choices that we make. Based on our values and strategy, we have determined a set of business goals and Must-Wins – the development targets that we must overcome in the near future in order to advance on the path to profitable growth.
1. Demanding conditions
As the northernmost tyre manufacturer in the world and an expert in challenging conditions, we promote and facilitate safe transport. In freezing blizzards or heavy summer rain, our tyres offer reliability, performance and peace of mind. We are the only tyre manufacturer that focuses on products and customer needs for demanding conditions.
2. Innovative core competence
We are focusing our core competence on a narrow product line, the replacement markets and three business areas: 1) passenger car, SUV and van tyres; 2) heavy special tyres and 3) tyre and car servicing. We develop and manufacture premium tyres whose unique innovations provide added value in different applications from forestry work to safe driving on highways.
3. The most satisfied customers
We want the users of our products and services, as well as our dealers, to be the most satisfied customers in the tyre industry. A committed and extensive distribution network and effective logistics help us ensure the good availability of our products throughout the peak season. The Vianor chain spearheads our distribution channels and its direct contact with consumers provides us with valuable information about the needs and wishes of the end customers.
4. Select markets
We are focusing on regions where the driving conditions are demanding due to the changing seasons. Our core markets are the Nordic countries and Russia, where we are the market leader in premium tyres. Central Europe and North America are other key markets for us in terms of profitable growth. We sell most of our tyres in the replacement markets.
Key strategic objectives
The focused strategy establishes clear goals that we work towards with determination.
Market leadership and the best processes in the industry
- We are the market leader in premium tyres in the Nordic countries and Russia.
- We have a strong market position in North America and Central Europe with our core products and with our special products internationally.
- We are the undisputed pioneer in winter tyre technology as well as the manufacturer of the best premium summer tyres and special tyres in the world.
- Our key processes and business networks are efficient and the best in the industry.
Profitable growth faster than the market
- Our annual growth exceeds that of the market.
- We continue to be the world’s most profitable tyre company. Our operating profit will remain the best in the industry, at 22% at a minimum.
- We have an efficient organisation with sales growing faster than our fixed costs.
- We offer the industry’s best products and services that help people drive more safely and comfortably.
- We know our customers and their wants and needs.
- For shareholders, we offer stable dividends and a consistent dividend policy, as well as increased share value through profitable growth.
- We are a valued and desired employer.
- Our personnel are skilled and highly engaged people who want to further improve their personal competence as well as our company as a whole.
Must-Wins – Key challenges to overcome
The group-level Must-Wins that support our goals are the key challenges that we must overcome in order to advance on the path to profitable growth.
Examples of year 2016 Must-Win activities
1. FIRST CHOICE FOR CONSUMERS
Increasing consumer loyalty and satisfaction as well as our company and product awareness especially in growth areas.
2. PREFERRED PARTNER FOR CUSTOMERS
Investing in long-term partnerships with customers based on mutual benefit. Improving the quality of all services.
3. WORLD’S BEST TYRES & INCREASING NUMBER OF SERVICES
Solid flow of innovations and world’s safest tyres. Growing portfolio of new services for sales support, distribution partners and consumers.
4. STRONG GROWTH IN CENTRAL EUROPE & NORTH AMERICA
Clear improvement in our brand recognition and market share. Gradual growth of our price position in Central Europe.
Values guide and support our strategy
Our company culture is called ”Hakkapeliitta Spirit” which includes the following values:
We are quick and brave. We set ambitious objectives and perform our work with persistence and perseverance. We are dynamic and punctual, and we always make customer satisfaction our first priority.
We have the skill to survive and excel, even in the most challenging circumstances. Our competence is based on creativity and inquisitiveness, and the nerve to question the status quo, we have the desire to learn, develop and create new.
We work in an atmosphere of action and genuine joy. We work as a team. We support and rely on each other and offer constructive feedback when needed. We embrace our differences and encourage our team members to individually pursue winning performances.