Our interest in this thesis is based on the discussion we had in previous courses about the development of emerging countries. Since two of the writers of this thesis are from Poland we tried to found a common interest, hence the relationship between the Polish subcontractors and Swedish customer is analyzed. Poland is also known as a low cost country and that make it favorable when it comes about hiring subcontractors. The subcontractors in Poland are also known for the skills and expertise to produce quality. Something that is important for many foreign companies. IKEA has more than 40 subcontractors in Poland; the reason is just the factors mentioned above, to be able to produce good quality to low cost. (www.ikea.com) Earlier research indicate that Poland is developing rapidly compare to other emergent countries in Eastern Europe. There have been and will be changes in the environment that most likely will affect the competitive advantage that the subcontractors are the leader in. In other words these changes might lead to that Poland loses its customers which choose other markets that still are able produce at lower costs. The main problem for the thesis is to investigate how can polish subcontractors cope with environmental changes to sustain competitive advantage? In order to answer this, we used a qualitative approach where the characteristics of a case study are conducted. We collected and analyzed data in an abductive way. The interviews with the three Polish subcontractors were made in a semi structure form via telephone. To be able to solve the above problem an environmental analysis of Poland was done, in order to found those factors that are mentioned as worries and are likely to change in the future. The changes are presented from subcontractors’ perspective and recommendation how to cope with them is given.

<p>Our interest in this thesis is based on the discussion we had in previous courses about the development of emerging countries. Since two of the writers of this thesis are from Poland we tried to found a common interest, hence the relationship between the Polish subcontractors and Swedish customer is analyzed.</p><p>Poland is also known as a low cost country and that make it favorable when it comes about hiring subcontractors. The subcontractors in Poland are also known for the skills and expertise to produce quality. Something that is important for many foreign companies. IKEA has more than 40 subcontractors in Poland; the reason is just the factors mentioned above, to be able to produce good quality to low cost. (www.ikea.com)</p><p>Earlier research indicate that Poland is developing rapidly compare to other emergent countries in Eastern Europe. There have been and will be changes in the environment that most likely will affect the competitive advantage that the subcontractors are the leader in. In other words these changes might lead to that Poland loses its customers which choose other markets that still are able produce at lower costs.</p><p>The main problem for the thesis is to investigate how can polish subcontractors cope with environmental changes to sustain competitive advantage?</p><p>In order to answer this, we used a qualitative approach where the characteristics of a case study are conducted. We collected and analyzed data in an abductive way. The interviews with the three Polish subcontractors were made in a semi structure form via telephone. To be able to solve the above problem an environmental analysis of Poland was done, in order to found those factors that are mentioned as worries and are likely to change in the future. The changes are presented from subcontractors’ perspective and recommendation how to cope with them is given.</p>