Vision, business concept, goals and strategies

Vision

OEM shall be a leading technology trading group in components and systems for sustainable growth. 

Business concept

OEM offers an extensive and detailed range of components and systems from leading suppliers in selected markets in Europe. A well-structured local market organisation and efficient logistics make OEM a better alternative to the suppliers' own sales organisations. OEM provides a high level of expertise and service, and markets the products according to the specific conditions of each market.

Goals and objectives

OEM´s overall business objective is to be one of the leading technology trading companies in the company's chosen geographic markets. Profitability shall be on par with, or better than, that of the largest players in their respective market.

In 2022, the company's four financial targets were:

• Minimum sales growth of 10% per annum through a business cycle.
• A minimum EBITA margin of 10% per annum through a business cycle.
• A minimum return on equity of 20% per annum through a business cycle.
• A minimum equity/assets ratio of 35%.

In February 2023, new targets were approved by the Board of Directors, and the four financial targets thereafter are:

• Minimum sales growth of 10% per annum through a business cycle.
• A minimum EBITA margin of 12% per annum through a business cycle.
• A minimum return on equity of 25% per annum through a business cycle.
• OEM shall prioritise a strong financial position to ensure operational stability and enable business acquisitions regardless of economic conditions. The debt/equity ratio shall be below 100%.

Strategies

OEM has defined five strategic areas that are important to its future development and success and for achieving its financial targets.

Growth

OEM will create growth organically, through acquisitions and geographic expansion. These three together will generate growth that meets the growth target.  

1) Organic growth 
OEM gives priority to organic growth. OEM achieves organic growth by increasing its market share and expanding the range that the company offers its customers. OEM's operations are expected to outpace the underlying market growth in those areas where the company is well established. In markets where OEM has yet to achieve a position among the five largest players, the aim is to achieve considerably higher growth.

2) Acquisitions 
Business combinations are a priority in OEM's growth strategy. oem acquires companies and product ranges that strengthen its market position within current product areas in existing markets, and companies that add a brand-new range or give OEM access to a new geographic market.

3) Geographic expansion
Geographic expansion into new markets will take place when it is possible for OEM to become a prominent player by representing several of the company's suppliers.

Product range 

OEM shall offer a product range consisting of components and systems from leading suppliers. The range is adapted to the local markets in which OEM operates. OEM' s key strategy is ongoing development of its range and it implements this strategy through partnerships with existing and new suppliers. Each local marketing organisation is also tasked with finding new products that will further enhance the competitive edge of the portfolio of offerings.

Marketing activities 

OEM shall have strong marketing activities based largely on face-to-face selling combined with the website as a hub in the sales process. Personal meetings are crucial to understanding customer needs, and a practical way for oem to communicate its experience and technical expertise. Face to- face selling is supported by digital and printed marketing communication.

Logistics

OEM shall develop logistics solutions that deliver excellent customer service, high quality and significant cost-efficiency. Most of the properties belonging to the 15 logistics units within the Group are owned by OEM. Each unit adapts its range to current operations and works towards greater coordination of the stockholding with other warehouses. In connection with many of OEM's logistics units there are processing units that effectively provide unique adjustments for specific customers and the installation of products.

Employees and management 

There should be a familial culture with a focus on entrepreneurship in all operations. OEM shall give its employees opportunities to develop within the company, taking account of business goals and strategies as well as the employees' ambitions. Recruitment and employee strategies will lead to a significant number of leadership positions being filled internally.