Ideas for improvement. How can we improve our current business model ?. Remarks current model. Sub headline. - ACL’s current business volume is too small. ACL also has problems with competitiveness, witch limits our growth potential.
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How can we improve our current business model ?
- ACL’s current business volume is too small. ACL also has problems with competitiveness, witch limits our growth potential.
- ACL’s gross margin & bottom line are not sufficient enough to be self – financing.
- ACL does not yet profit enough from assets, that other TWE group companies like a&n&a & Botec have to offer (price structure, packaging).
- Companies within the TWE group with similar activities all have an individual strategy/dynamic and don’t share any core functions (like f.e. product management, strategic purchasing, marketing,…).
Together, we want to develop a business plan to fix the current shortcomings in order to achieve the following objectives:
Within the next coming years we want to obtain a significant part of the (retail) market in the Benelux & France for TWE/a&n&a/Botec product range.
Together with other group-companies (a&n&a/Botec), we want to develop a successful European strategy for our cleaning tools business, and obtain a relevant market share Europe-wide. This European-strategy will also be necessary in order to protect our position in our local markets.
We would like to divide such a plan into three milestones:
- Milestone 1: Maximizing/optimizing usage of elements already existing within the TWE Group.
- Milestone 2: The acquisition of additional market share in ACL’s territory.
- Milestone 3: Development of Pro Alliance into an international shared service platform, together with Turtle Wax.
Maximizing/optimizing usage of elements already existing within the TWE Group.
striving to optimize synergies and channeling all individual efforts into one direction.
Short term possibilities:
Long term possibilities:
An adaptation of the intercompany set-up within the TWE group, by creating a new entity (JVC)
- Where all existing efforts and investments (a&n&a, Botec, ACL) could be joined and channeled into the same direction.
- Where an international strategy towards our customer base (European retailers) will be developed and managed.
- Where a number of strategic core functions can be shared (like f.e. strategic purchasing activities, product management, marketing).
Production & packaging
Local sales units
The acquisition of additional market share in the Benelux
- An acquisition could allow instant access to a part of the market (customers of the acquired company), without initially pressuring gross margin.
- Acquiring the volume could help improve the development of gross margin and bottom line.
- The extra volume will enable possibilities to extend our market coverage, in terms of sales structure.
- Depending on the acquisition, it can also enable cross selling (between different product ranges).
Do the board and shareholders of ACL agree to look into the possibility of a new acquisition?
If so, LXB will prepare a detailed document, describing different possibilities.
Develop PAL into an international shared service platform together with Turtle Wax.
If developed further, PAL can enable important strategic and competitive advantages for our business
How do we take it from here ??