Strategy of the KION Group
When the KION Group presented its Strategy 2020 in March 2014, it clearly laid out its goals for the next few years. Under this strategy, the Company aims to leverage its strong global position and cross-brand synergies even more effectively and to become the industry leader worldwide. The focus is on growth, profitability, efficient use of capital and greater resilience during economic downturns. An integrated business model – with a high proportion of service business – and a multi-brand strategy form the basis. The targets are an EBIT margin of consistently more than 10 per cent and a far higher level of return on capital employed (ROCE).
The KION Group Strategy 2020 attaches particular importance to expansion outside Europe, above all in the fast-growing Asian and North American markets. The Company deliberately develops product ranges outside the premium segment that are geared to requirements in China, other Asian countries and other growth markets. In addition, the KION Group intends to significantly expand its presence in the US market with a specific product and service offering. It will do so with the aid of an existing plant in South Carolina and a comprehensive dealer network.
From production right through to marketing, sales and service, the aim is to fully exploit economies of scale and efficiency gains in every area. The purchasing and product development units will collaborate even more closely in order to further reduce production costs. Moreover, plant capacity utilisation is to be improved and the degree of inhouse production will be reviewed on an ongoing basis.
Increased use of shared modules and platforms – which is a core area of research and development work – should make the brand companies even more competitive. The shared platforms, which are mainly developed in the Chinese R&D centre, will be used in growth markets. Meanwhile, the focus in Europe will be on cross-brand modules.
The KION Group’s company profile is unchanged compared with the description in the 2013 group management report. The description of the management system also remains the same.