Annual Report 2009 - Husqvarna Group

Strategy Husqvarna Annual Report 2009 7
Husqvarna is the world’s largest producer of outdoor products. The Group has
leading positions in the global market within product areas that account for
approximately 80% of sales.
Husqvarna’s strategy
Husqvarna shall be the leader in the global market within its
core areas. The Group’s strategy involves improving internal
efficiency and reducing costs throughout the entire supply
chain, in order to create a framework for increased
investment in product development and brands
that will further strengthen the Group’s position.
The financial goal is to achieve average annual organic
growth in sales of approximately 5% and an operating margin
of more than 10%, over the course of a business cycle.
Strategic review
In 2009 a strategic assessment of Group operations was performed
in order to establish priorities and goals for the coming
years. The results of this assessment were that Husqvarna has a
strong base and good opportunities for growth within existing
product offering and distribution channels.
The Group’s primary strengths include:
• Strong brands.
• Efficient global distribution network.
• Broad product offering.
• Flexible supply chain.
The most important actions needed to further strengthen
the Group are summarized below:
• Reduce the number of brands, focus on Husqvarna and
Gardena.
• Enhance efficiency of sales organization, improve customer
service.
• Focus on strengthening core product areas.
• Increase investments in products with improved environmental
performance.
• Concentrate production in fewer and larger plants, increase
share of production in low-cost countries.
• Reduce the number of warehouses.
• Develop an integrated global supply chain.
• Increase investment in IT support in order to establish
and support Group-wide global processes.
The robotic lawn mower Automower ®
is now available in four metallic colors –
orange, blue, white and brown.