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The 1-Hour Industrial Gas Leader – The BaseMarket Positioning Strategy for Leaders (2)

RapidKnowHow
Become The Leader on a Local Market,or Specific Market Segment to Drive Profitability and Cash-Flow

Hello and Welcome!
Today we’ll learn how to build your competitive leadership position in the BaseMarket

Local Market Dominance

Each company within the group should use a geographically selective market strategy aiming at leadership locally rather than total market coverage

BaseMarket Business is local:

•Efficiency and possibilities for action depend mainly on your LOCAL MARKET POSITION

It is more profitable to dominate a few local territories and business segments than to have a WEAK POSITION throughout the country

Leadership Competition

Your company should act to defend and improve it’s market position by preventing entry of new competitors and aiming at value and price leadership, minimizing risk of price wars.

THE BASEMARKET LEADERSHIP COMPETITION

High service performance adapted to customer needs
Strong market control
Efficient retail outlets
Professional value-adding sales people
Cost-efficient operations
Reliable Market Information System
Fast retaliation measures
Acquisitions of local competitors
New business models
New applications / products
Complementary retail channels (milkman, product boxes)
WELL PREPARED AND EXECUTED MARKETING CAMPAIGNS

Market Expansion

All companies of your group should have an expansion strategy that is profitable, selective and controlled

PROFITABLE
Based upon investment calculations, considering all effects on present business

SELECTIVE
Concentrating on segments/applications where InnovGas has a competitive edge
Geographically covering areas where competition is alone or weak and InnovaGas can operate without long-term cost disadvantage

CONTROLLED
Gaining market share in areas with low risk for retaliation on price at existing customers
Securing sufficient financial and personnel resources for managing the new and present business

Acquisition

All companies of your group should – if financially feasible – give high priority to acquisitions of independent producers, re-sellers and service providers to strengthen your leadership position

Gain Local Market Share
Improve Market Control

Every acquisition has be well prepared and executed:

Due Diligence of the target
Based on a profitability calculation in line with overall objectives/strategies
Planned in detail regarding selection, investigation, negotiations, financing, payment, control and merger
Legal contracts with payment terms related to collection of cylinders and liabilities, including a non-competition agreement with present owners.
Immediate management control and earliest possible integration with InnovaGas to:
Efficiently realise merger effects
Defend against competitior actions

Today we’ve learned how to build your competitive leadership position in the BaseMarket. To Your Success