Saab 2010 Annual Report Download - page 23

FOCUSED PORTFOLIO
Active management of Saab’s portfolio is the fourth of our
four overarching strategic challenges. This means improv-
ing existing products and solutions and developing ad-
vanced new ones in order to maintain a well-positioned
core portfolio.
Saab’s challenge is to balance its oering in order to ensure sustainable
growth. is requires that our growth comes from both new products
and solutions and the further development of our current products and
solutions as well as certain niche products. We must have a strong port-
folio of standardised products and solutions at the same time that we
secure Gripen’s position as a next-generation ghter jet in Sweden and
abroad. We have to be able to sell standardised products individually or
oer full-service solutions to serve the customer at every turn. For
more information on our core competencies, see page .
Focus on our core areas
In trying to shape our product portfolio, we are focused on developing
operations where we today have leading technological expertise, i.e.,
products that are – or potentially could be – market leaders. An
important part of our product strategy is to have a clear plan which
products and solutions to oer in each market.
Sustainable product innovation – by increasing our own invest-
ments and in collaboration with customers, universities and industrial
partners – is a key if Saab is to maintain a focused portfolio. To further
improve our position in areas where we are already a leader requires
that R&D investment is clearly targeted on our core competencies.
In some cases, it is critical that product innovation is achieved
through customer-ordered development projects, although we see that
in the long term these projects are trending lower due to stagnating
public defence spending. For more information on our core compe-
tencies, see page , and for more on our R&D, see pages –.
Develop the right products
Despite lower defence spending, there are a number of product areas
where we see great growth potential, especially for our principal
niche products. One example is our electric unmanned underwater
vehicles, which can be used at deep depths in both military and civil
applications. Civil security solutions and training systems are other
areas with large growth potential.
Another area where we anticipate major growth opportunities is
Rapid D Mapping , a real-time system that create three-dimensional
images from aerial photos. is is a new technology for the military
market, and interest is very high for its various applications. e
information generated can be used for precise location in specic
areas. e technology is based on Saab’s more than  years of expe-
rience in image processing for digital target seekers and expertise in
navigation systems. For more information, see pages  and .
Going forward, we will strengthen product content based on
Saab’s core areas. We see opportunities to create new solutions based
on existing platforms in order to expand them to other areas of
application and to create greater openness in our systems, i.e., that
they can operate together with those of other suppliers.
Developing product areas where we currently have critical cut-
ting-edge technology may also mean various types of acquisitions to
strengthen our core portfolio in key markets. In the same way, we
may divest products or product areas that do not support our core
operations.
To balance the product portfolio, we continuously work on:
• Active risk assessment and management
• Active portfolio management (acquisitions and divestments)
• An optimal capital structure and continuous operating
eciencies.
Our long-term goal is to achieve annual organic sales growth of  per
cent. In addition, we may grow through acquisitions in prioritised areas.
Saab’s four strategic priorities
PEOPLE
PROFITABLE
GROWTH
PERFORMANCE
PORTFOLIO
20 SAAB ANNUAL REPORT 2010
SAAB’S STRATEGIC PRIORITIES > PORTFOLIO