Our strategy
Our purpose and business strategy 2022-2026 – updating our strategy to achieve our ambitions
Stena Line is a leading European ferry company with a strong heritage and an exciting future. Our 5,100 employees make sure 2 million freight units and 7 million people reach their destination safely each year.
We have three growing business segments that complement each other strategically; freight, travel and onboard sales and services, using the most comprehensive route network in Europe.
During the past five years we have strengthened our customer offer across all segments. We have streamlined our operating model, and significantly reduced our cost base.
The world around us continues to change
The past few years have taught us that the world is constantly changing – something we have to get used to. The major trends which affect our business are:
- The transport business in Europe is changing. This includes a lack of drivers and the trend of shifting from accompanied to unaccompanied freight. There is also an overall request for more green and digital solutions, and our competitors continues to offer more complete services that includes distribution and logistics
- The consumer want to reduce their impact on the environment and increasingly manage their trip online
- Competition is getting tougher when larger companies are cutting costs through scaling up their operations, and the cost per unit is going down. Ports and logistic hubs are becoming more strategically important. Investments can bring down unit costs and strong market players are expected to continue to grow by buying competitors
- Increasing expectations on sustainability – driven by politicians, freight customers, and travel consumers
- The fight for talent has only begun and will become tougher. This will increase cost and people will change jobs more frequently
- The political climate in the world is getting more intense which can affect our business immediately and/or long term
How do we stay relevant?
To stay relevant to our customers and grow our business, we endlessly need to adapt. This is why we continue to update our business strategy.
Our DNA
We have realised that we have parts from our former strategy that is constant and defines us; our DNA. That includes:
- Our behaviours – Welcoming, Caring and Reliable
- Our absolute commitments – Efficiency, Customer centricity and safety
- At the heart we have our Vision – Connecting Europe for a sustainable future (what we strive for) and our purpose (Being a trusted leader between people, places and societies (the reason why we exists besides making money).
Our DNA is constant, which means that even if we update the strategy, our DNA will stay the same
Our focus areas
The updated strategy on the other hand is outlined in four focus areas. They will help us meet the trends that are affecting us. For the updated Strategy that runs from 2022 to 2026 the four focus areas are:
1. Profitable growth using group strengths
This focus area is about using the whole of Stena Line group to grow the business. This includes both our core business and our portfolio companies. Our core business is our daily operations.
Examples of our portfolio companies is FreightLink
[https://www.freightlink.co.uk/] and Stena Line Travel and Retail Group [https://www.stenalinetravelgroup.com/]
We want to be even better at finding new opportunities in both our core business and within our portfolio companies. On top of that, we’re always monitoring the opportunities to buy new companies that would complement or benefit our core business.
2. Win freight customers of tomorrow
This focus areas is all about to continue to grow our freight business. We will do this by making sure our price and offer reflects the customers’ needs and the value we deliver. We will give the customers new and better services.
3. One strong consumer business:
This focus area is about how we grow both our travel and onboard business, as one strong consumer business. It means that we combine the two to get the best out of both. We will grow this area by continue to make our current offer even better and improve the communication with our consumers through digital channels.
4. A leader in sustainability:
This focus area is about how to reach our goals to reduce our CO2 emission with 30% by 2030 and how to achieve an employee net promoter score higher than 30 in 2026. We will do this by investing in the conversion of our vessels to reduce our carbon footprint as well as taking good care of our people. We will also provide our customers with options that help reduce their impact on the environment. For us sustainability means caring for people, planet and profit.
What we want to achieve and how to reach our ambitions
We have set up a number of goals that we want to achieve until 2026 or 2030. First and foremost we have our purpose, which is what we contribute with to the society, that will steer us in the right directions. By being a trusted link between people, places and societies (our purpose) we will be connecting Europe for a sustainable future (our vision)
By 2026 we will have…
doubled our group revenue. But we also want to grow profitably, which means we will have a net margin (the percentage of revenue that is profit) of more than 7%.
…. satisfied customers and reach a Customer Satisfaction Net Promoter Score of more than 65
We will be a leader in sustainability and …
- By 2026 reach an employee eNPS score of 30.
- By 2023, have 30% female
… and by 2030 reach:
- Reduced CO2 emissions from our vessels by 30%
How can we play our part?
We will contribute in many different ways depending on where we are in our business, on the ships, in our ports or terminals or in the offices.
Together with your manager and your team, you will find out how you can contribute to our success in the best way. However, there are a few things that we all can do:
- Embrace and live our three behaviours: Welcoming, Caring and Reliable.
Welcoming
We always have an open and positive attitude. Because we’re warm and friendly, we’re easy to approach and we make sure everyone feels that they belong. We gladly share our knowledge and welcome new challenges.
Caring
We are always here to help in a friendly and professional way. Because we take the time to listen and understand, we build long-lasting relationships. We are team players that collaborate easily and pay attention to detail. For us, the Big Little Things make all the difference.
Reliable
We always deliver on our promise. Because we are knowledgeable and take responsibility, we create result and are easy to trust. We put safety first, and are well-prepared for any situation. We are responsible with both ours and others’ time, money and resources.
Summary
Stena Line is a leading European transportation company with a strong heritage and an exciting future. Our 5,100 employees make sure 2 million freight units and 7 million people reach their destination safely each year.
We have a clear purpose – to be a trusted link between people, places, and societies. Our commitments is to provide a safe, efficient and customer centric journey.
To stay relevant to our customers and grow our business, we always need to adapt. This is why our business strategy continues to evolve.
The overall target is to double our revenue by 2026, while maintaining profitability and increasing customer satisfaction.
To adapt to the world around us we have identified four strategic focus areas – to use our group strengths to drive profitable growth, to win the freight customers of tomorrow, to drive one strong consumer business, and to be a leader in sustainability.
Our deeply-rooted business spirit and the strength of working as one group, together with our behaviours welcoming, caring and reliable, guides us in our everyday work.
Together we’re connecting Europe for a sustainable future.
Interested in learning more? Reach out to your manager!