Scania annual report 2003

GOALS AND STRATEGIES
Strategy for profitable growth
Scania’s strategy can be summarised in two words: profitable
growth. Historically, this profitability is based on organic growth.
Scania focuses on customers, products, markets and activities
with the potential to generate future profitability. This also remains
Scania’s strategy.
Strategy
Concentration on heavy transport
vehicles
Scania’s operations focus on heavy transport
vehicles. In mature markets, demand
for heavy trucks and buses increases at
the pace of economic growth. In emerging
markets, demand increases faster or at
the same pace as infrastructure expands
and logistic demands increase in the
transport industry.
Modular product system
With Scania’s modular product system,
the customer gets the exact vehicle specification
he or she wants, regardless of the
part of the world where the vehicle is manufactured.
The more closely a vehicle and
related services are adapted to a transport
task, the better the customer’s operating
economy will be. The modular system is
the basis for product quality. It simplifies
parts management and contributes to a
higher degree of service. The modular system
optimises the total number of main
components that are included in Scania’s
product range. It thereby allows considerably
longer production runs for these components
than is possible in a conventional
product system.
Integrated range of vehicles, services
and financing
Scania grows by offering customers combinations
of vehicles, service and financing
for the best total solutions in the market.
Scania’s customers increasingly use their
vehicles round-the-clock. This presupposes
rapid, continuous access to service and repairs.
In addition, Scania is continuously
improving its sales and service network.
Customer financing is an important element
of Scania’s complete product range.
Focus on growth markets
Scania’s main markets – Europe, Latin
America and Asia – have good potential
for long-term growth. An increasingly borderless
Europe, with growing economies
and an expanded number of EU member
Vision
Scania’s vision is to be the leading
company in its industry by creating
lasting value for its customers, employees,
shareholders and other
stakeholders.
states, offers major opportunities to manufacturers
with a well-developed sales and
service network.
In Latin America, there is an increasing
demand for vehicles, services and financing
as an ever larger share of both goods
and passenger traffic utilises heavy vehicles.
Asia is a long-term growth market.
Infrastructure improvements will open the
way for a more efficient transport sector.
Mission statement
Scania’s mission is to supply its customers with high-quality
heavy vehicles and services related to the transport of goods and
passengers by road. By focusing on customer needs, high-quality
products and services, as well as respect for the individual,
Scania shall create value-added for the customer and grow
with sustained profitability.
Scania’s operations specialise in developing and manufacturing
vehicles, which shall lead the market in terms of performance and
life-cycle cost, as well as quality and environmental characteristics.
Scania’s sales and service organisation shall supply customers
with vehicles and services that provide maximum operating time
at minimum cost over the service life of their vehicles, while preserving
their environmental characteristics.
ANNUAL REPORT 2003 12