SYSTEM SUPPLIERS: Market share strengthening and business consolidation

For almost five years, the system suppliers specialized in selling products for the thermal insulating joinery fabrication had crossed a period less favorable in terms of business efficiency. Regardless of the analyzed segment, beginning with glass elements and ending with equipment for processing, the recession has left a huge imprint on corporate profitability, leading, in many cases, even to bankruptcy. In spite of the less pleasant aspects, however, certain advantages can be identified in the economic crisis. The main one refers to the opportunity of strengthening one’s position by increasing market share through the niches left free by competitors which went bankrupt and putting a more pronounced emphasis on implementing coherent marketing strategy (especially in the development of products tailored to the customer demands, optimization of distribution, price adjustment, improvement of communication, etc.). There are enough positive examples offered by experienced companies working in different segments, which were able to identify and exploit the necessary resources in order to mitigate negative effects and minimize the risks of all kinds. Obviously, the management is difficult in such circumstances and requires a deep commitment from the company's representatives and their expertise in optimizing the management of negative situations. Also, short-term prospects are not the most optimistic, if we analyze the current situation and the positions of representatives of companies in the industry. However, their ambition to overcome the current difficulties and to guide their companies in a way that ensures stability and consolidation can be noticed. How many of these actions will be successful remains to be seen. What should necessarily be mentioned is that the industry has a great potential that can be exploited in the best conditions, in the years to come after the recession ends. However, one should not rely on returns on investments (ROI) similar to those obtained in the period before the crisis. The prognosis is that the growth rates will be at a lower level, but important enough to justify the interest of entrepreneurs. For further information and a detailed analysis of the current Fereastra issue, click here!