KOVAL SYSTEMS’ Strategic Direction

KOVAL SYSTEMS’ Strategic Direction

From the beginning, The KOVAL SYSTEMS, a. s., has been focused on production of a clearly defined range of products and a strong customer orientation. It is the customer requirements that make and shape a range of products and services provided and delivered to almost all countries over the world.

The fact that the company does not only have its production section, but also a development and design workshops and software and hardware development divisions, makes it flexible to changes in customers’ behavior and requirements and it continually brings innovative products with high-added value.

The changes in markets and in society shape the product portfolio as well as the company strategy. Despite the fact that the main strategy, i.e. a strong customer orientation and a stable and continuous growth built on our product portfolio, has not changed since the company’s beginning, but the general situation in markets, the considerable technological and technical expansion and the ambition to expand the company’s activities beyond Europe, have added new means to achieve steady growth for a long-term and medium-term strategy.

The own production is no more a way to achieve stable and long-term growth and a customer satisfaction. That’s why we define three basic pillars of the product range:

1. OUR PRODUCTS: A range of our products are the development and construction outcome and they are the core part of the company’s production plan.

» Long-term strategy for our own products: A range of our own products must generate at least 60% of revenues, providing sufficient resources to increase the growth speed and technological equipment of the company.

» Mid-term strategy for our own products: The goal is to stabilize a range of our own strategic products. It is necessary to ensure sufficient development, structural and technical capacities to offer the customer an advanced, competitive product providing at least the same functions and the quality level as high as that of competition, but at lower costs.

2. COOPERATION & CUSTOM-MADE PRODUCTION: The production of parts and units based on a customer’s documentation is an effective way how to stabilize the company in the volatile market environment and optimize the use of available production capacities.

» Long-term strategy for the cooperative production quantity: the quantity must reach the company’s revenue maximum of 30-35%. 

» Medium-term strategy for the cooperative production quantity: the quantity must reach approx. 40-45% of the company’s revenues.

3. SPECIALIZED PROJECTS: They include our own products, but they are not commonly sold and repeatable. These are primarily specialized sorting lines, depository, museum projects and complex deliveries.

» Long-term strategy for specialized projectsthe reference and project basis and acquired knowledge, experience and position in the market to move as many products from " Special Projects " to a range of own products, so that their sale can be regular and planned and achievable at limits specified beforehand.

» Medium-term strategy for specialized projectscustomer and market needs are used to expand the specialized project volume to ensure and raise awareness among potential customers and to obtain the necessary references for future projects.

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