Atlas Copco

Topics: Brand, Strategic management, Emerging markets Pages: 10 (3680 words) Published: March 10, 2013
Atlas Copco
From a Strategy Perspective

Author: Tobias Maberg

Environmental and Social Analysis4
Market Segments and Positioning5
SWOT – Analysis10
Implementing Plan11

Atlas Copco is a world leading industrial productivity solutions provider and was founded 1873 In Stockholm, Sweden. Their products and services ranges from compressed air and gas equipment to construction and mining and industrial tools such as compressors and assembly systems. Also, they offer services related to the aftermarket as well as rental of equipment. The company consists of 4 core segments; Construction and Mining, Compressors and Generators, Industrial Tools and Parts and Services. The core business has remained the same throughout the years; to deliver supreme level of increased efficiency to customers through industrial productivity solutions ( (a)). Atlas Copco manufactures their products in more than 20 countries and the products are sold under various brands to more than 170 countries worldwide. The group controls more than 30 different brands worldwide and each brand focuses on a different market segment which leads to a strong focus towards a well defined customer segment. Also, the products in the different brands are differentiated and are marketed throughout various distribution channels in order to better satisfy certain customer needs and preferences ( (b)). The vision of Atlas Copco is to be “First in mind – First in Choice” ( (c)). This means that the company strives to remain leader in their business, to be first when it comes to the minds of the customers and to be first in mind when it comes to being innovative. They also strive to enforce strong reliable results when at the same time taking responsibility for the use of limited resources as well as environmental and humanitarian factors. Basically, they strive to ensure long-term sustainable production. When it comes to how they actually do their business Atlas Copco offers a one-stop-shop where customer’s gets access to all products within the company’s many different brands and segments. This is of course available in many different languages making it user friendly for their customers. Also, the distribution is something that the company is striving to be excellent in. By using distribution centers in both Europe and US that has responsibility for the logistics they can avoid local inventories making their delivery more flexible. When it comes to the purchasing of the group there are no special individual that does it making Atlas Copco more decentralized since each different business segment sets up and are responsible for their own purchasing in order to ensure that the individual needs are fulfilled for that certain segment ( (d)). Moreover, the actual structure of Atlas Coco’s organization is divided into four business areas and they contain 21 different sub divisions. Each area is decentralized and has its own responsibilities such as following objectives and financial orders set by the Board of Directors. This also means that each division is responsible for the results, strategies, manufacturing etc ( (e)). In the last five years Atlas Copco has had quite a rollercoaster experience. In the end of 2008 when the financial crisis hit the world with its full power, it hit the industry sector, including Atlas Copco badly. This was primarily due to the rapid decrease of investments from customers in the mining sector. In order to cope with this new reality Atlas Copco launched a campaign to adapt capacity and to cut costs ( (f)). As Table 1 shows, the movement of the Atlas Copco stock in the last 5 years on OMX Stockholm has been quite volatile, especially during the financial crisis in the end of 2008.

Table 1 – Atlas Coco’s stock evolution on OMX Stockholm in the last 5 years (, 2012)....
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