Anticimex is currently pursuing a strategy of renewed focus on pest control, which we have identified as our core offering.
There are several reasons for this, among them the fact that pest control is an area that combines strong growth on a global scale with good opportunities for value creation. Consequently, Anticimex is in the process of rolling out a multitude of initiatives related to pest control services globally. We will also complement and strengthen the core service offering with related offerings that add value to our business proposition.
Improved penetration in existing markets
We aim to be market leader or at least number two in all markets that we serve. Our density and presence can be increased in many ways. One way is to focus on both the commercial and residential sectors. Our unique insurance solutions will help us penetrate the residential sector. We are also addressing underpenetrated segments in markets where we have had a more limited involvement.
Grow our fixed contract base
Anticimex delivers its services on an as-needed basis or within the framework of a fixed contract or an insurance solution. Our preferred way of doing business rests on a contract/insurance solution, since it offers the benefit of predictable revenues supporting investment in preventive measures. The rate at which we are able to introduce this model, however, varies greatly across different markets and will be done at a pace that is tailored to customer acceptance.
In general, commercial clients are more used to working with contracts than residential customers, the exception being Sweden with its long-established tradition of bundling pest control with a property insurance solution. Elsewhere, our ability to bundle different services, including, for example, washroom services and legionella protection, allows us to offer our commercial clients an attractive package and a one-stop solution for a range of their needs.
Bundling different services that are route based and require regular inspections using a wide set of competencies is at the core of Anticimex’s business model and organisation. Our history of providing insurance-based pest control solutions – both in cooperation with third-party insurers and through our own insurance company – offers us a unique edge in the global pest control market as this is something that competing vendors do not offer.
Growing in the residential market
Besides a continued strong presence in the commercial market, with an increased focus on medium sized businesses, Anticimex also intends to grow in the residential markets in the countries where we operate. In many countries, household demand for pest control is considerably less penetrated than in the commercial market, which offers a greater scope for inroads and market share growth. Urbanisation, globalisation, and increased trade and travel, coupled with the effects of climate change, all combine to exacerbate the problem of pest incidence in the residential market.
Our digital initiative offers many opportunities for an improved customer dialogue through various communication platforms, which will increase the transparency and value of our services among consumers in general.
Branch of the Future
Our branches – with their respective branch managers – have been identified as key to Anticimex’s strategy. The branch managers are in a key position to oversee the daily operation of our technicians. In the end it is the technicians’ daily performance that determines customer satisfaction and efficiency in our operations. That’s why Anticimex has increased focus on branches and intends to gear our performance measures as well as operational tools and processes towards the branch level. We are convinced that this part of our strategy will be key to our future success.
Embracing new technology
The pest control industry is currently undergoing a major technological shift, towards more sophisticated methods of prevention and protection enabled by the advent of digital technology. The shift is accentuated by an increased demand for non-toxic, sustainable solutions required by new regulations, coupled with an increased focus on sustainability in society at large. This shift favours professional players like Anticimex, which possess the necessary organisational and financial strength to develop, drive, standardise and commercialise new digitised solutions.
Accelerating mergers and acquisitions
In order to continue growing and increasing density as well as generate synergies, Anticimex is continously monitoring attractive pest players or portfolios in present markets. Pest control operators are often highly entrepreneurial and we find that many companies that we initiate merger discussions with have a favourable opinion of our brand and ambitions. Anticimex’s governance model is characterised by transparency and a collaborative decision-making process which has been well received in merger talks and integrations.
Our geographical footprint is far from complete. There is interesting growth potential in many areas, as the factors underpinning the growth of pest control affects every corner of the earth. In 2015 the potential of the Asian markets started to be explored, and we made one acquisition in Singapore in the beginning of 2016 supporting the Asian markets. .