Leax Business Strategy

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 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:




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...
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