ROTO: Portfolio diversification and focus on individualized solutions

The German hardware provider Roto Frank AG is placed - since its launch on the local market - in the top of specialized companies active in Romania. The recession has found the company on a favorable position in terms of competition, the turnover being at a level of over 19 million EUR in 2008. It was the best achievement in terms of sales. After that moment a period of decline followed which was identical with the market's overall trend. However, thanks to cost-cutting strategies, reconfiguration of the product portfolio and strengthening of the partnerships with Romanian companies, the management team of Roto Romania has succeeded in maintaining a balance, the sales decrease taking place at a much slower pace than the general involution of the market. The company is currently carrying out an intensive program to strengthen the position in Romania. From recent analysis it appears that the local windows segment of thermo insulating joinery could record stagnation in the next period, due to the extension of the economic crisis. In what concerns Roto’s sector, it is clear that the situation induce some major disadvantages of this orientation, especially referring to the demand orientation to cheap systems. One of the proactive measures implemented by the company, in order to maintain a certain balance, refers to the intensive promotion of after-sales services. This concept is driven primarily by consumer demand and the development of powerful tailored solution. Also, the focus is placed on diversifying the portfolio, these actions resulting in the launch of a new generation of door hinges and multipoint locking device. The management team believes in a strategy involving explicit display of Roto’s potential, as a market leader, trying - at the same time - to strengthen this position. Even though the company was confronted with a prolonged recession, in the future the group will intensively engage in developing actions, which will involve investments in manufacturing technologies, products, distribution networks, etc. Also, substantial funds will be allocated to ensure that decisions taken regarding the company's future are accurate and robust. For further information and a detailed analysis of the current Fereastra issue click here!