Business idea and strategy
What if you made a case that was built on design and function, rather than flair and fanfare? This idea created Fractal: The keyword here is “idea”, because this was before even a single prototype existed. Many said no thanks, but more than enough said yes in order to take from napkin sketches all the way to mass production.
Historically, Fractal has grown with good profitability since the Company was founded and has a strategic plan for continued growth with good profitability. The plan is divided into four parts: continue to deliver high quality products within current product categories with a high level of service, expand to new product categories, increase marketing efforts and geographic expansion.
Continue on the current path – delivering high quality products and a high level of service to a growing base of end consumers
For ten years, Fractal has experienced a high rate of growth through broadening the product offering within current product categories, launching products in new geographic markets and continuously launching high quality products. Through this, Fractal has historically taken market share, especially in the premium gaming case market. In addition, the underlying market is undergoing strong growth. Fractal has good opportunities for continued growth by continuing on the chosen path. The goal is to strengthen the market position in power supplies, cooling products and fans for gaming computers, as well as to achieve a top global position in the PC cases market.
Expand to new product categories
Fractal is a well-established premium brand within gaming products. The strong brand, the well-functioning product development organisation and the established sales network mean that Fractal is well suited to expand to other product categories in the gaming product market. Fractal has identified a number of product categories into which it considers most relevant to expand. Expansion into these product categories would substantially increase its addressable market.
Increase marketing efforts
Fractal has established a strong brand within the initiated communities a large part of its end consumers are members of. However, it is possible to increase marketing efforts to reach more end consumers compared to its competitors. Fractal sees big opportunities in increasing marketing efforts, for example, on social media and streaming platforms such as Twitch. Other initiatives include working with influencer marketing to a greater extent, focus more on key figure driven marketing and opening its own e-shop. Fractal further considers that Amazon is an important part of the Company’s growth strategy, and aims to offer a complete product range and adapt product information to local languages. Today, Fractal sells directly to Amazon within the EU and via a distributor in the US and Japan.
Fractal has experience in expanding to new countries and markets around the world through local distributors and resellers. There are several interesting markets in which the Company has a limited presence. One example is China, where the Company made its entry in 2014, and during 2019 entered into a collaboration with JD.com and later Tmall. Another example is Southeast Asia, where Fractal currently has a limited presence. Both of these markets are large gaming markets that Fractal considers interesting from a growth perspective.
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