Leax Business Strategy
Overview
Founded in 1982 by Lennart Berggren and Axel Seger in
Sweden Heavy-vehicule industry, Construction- and Mining industry and General industry. Medium size sub-contractor 1997: Founders hand over LEAX to their 4 sons
Rapid growth: From a small company To a group of 6 companies in Sweden, Latvia and Brazil.
More than 500 employees Turnover: more than SEK 1 billion on a yearly basis Growth rate: more than 35% per year Through acquisiton and organic growth 3 different business units:
Mining
Automotive
Electromechanical
Updates and recent news
LEAX goes international with fairs More effective processes at LEAX to get through the past financial crises. The inauguration on LEAX BRAZIL in March of 2012. Leax do Brazil now ISO 9001 certified.
Q1 : What were the main strategic issues facing LEAX?
Macro-environment : PESTEL analysis
Political • Changing laws and legislations on environment and greenhouse gas emission in Europe Economic • Financial crisis of 2007/08 and the upcoming ones • Rising price of fuel and eventual fuel crisis • Cost volatility of raw materials Environmental: •Scandinavia’s general concern and focus on environment Social • The opening of a business unit in Brazil they need to deal with an hole different working environment.
Technological • The technology in fuel efficiency is evolving very fast • New IT solutions
Legal: • Laws and legislation are different in the different countries where LEAX has business units.
Porter’s five forces framework
The threat of entry : Low The threat of substitute : Low The power of buyers : High The power of suppliers : Low Competitive rivalry : Medium Overall attractiveness of the industry : high The industry offers good profit potential
Industry Definition
LEAX is in an Oligopolistic industry as we observed in the 5 forces. LEAX is powerful players thanks to the larger volumes developed. LEAX is competing with 5-6
Founded in 1982 by Lennart Berggren and Axel Seger in
Sweden Heavy-vehicule industry, Construction- and Mining industry and General industry. Medium size sub-contractor 1997: Founders hand over LEAX to their 4 sons
Rapid growth: From a small company To a group of 6 companies in Sweden, Latvia and Brazil.
More than 500 employees Turnover: more than SEK 1 billion on a yearly basis Growth rate: more than 35% per year Through acquisiton and organic growth 3 different business units:
Mining
Automotive
Electromechanical
Updates and recent news
LEAX goes international with fairs More effective processes at LEAX to get through the past financial crises. The inauguration on LEAX BRAZIL in March of 2012. Leax do Brazil now ISO 9001 certified.
Q1 : What were the main strategic issues facing LEAX?
Macro-environment : PESTEL analysis
Political • Changing laws and legislations on environment and greenhouse gas emission in Europe Economic • Financial crisis of 2007/08 and the upcoming ones • Rising price of fuel and eventual fuel crisis • Cost volatility of raw materials Environmental: •Scandinavia’s general concern and focus on environment Social • The opening of a business unit in Brazil they need to deal with an hole different working environment.
Technological • The technology in fuel efficiency is evolving very fast • New IT solutions
Legal: • Laws and legislation are different in the different countries where LEAX has business units.
Porter’s five forces framework
The threat of entry : Low The threat of substitute : Low The power of buyers : High The power of suppliers : Low Competitive rivalry : Medium Overall attractiveness of the industry : high The industry offers good profit potential
Industry Definition
LEAX is in an Oligopolistic industry as we observed in the 5 forces. LEAX is powerful players thanks to the larger volumes developed. LEAX is competing with 5-6