Profit and growth are the pillars of all business enterprises. The Swedish wood industry has historically been characterized by pressured margins and marginal growth, and in particular SME's have had many challenges in regard to long-term success. It is thus interesting and essential to understand more specifically how SMEs in the Swedish wood industry can navigate the challenges in the industry, and thus generate profitability and growth. Against this background, this study aimed to describe and analyze what strategies and associated key activities SMEs in the wood industry can work with to generate profitable growth. In order to gain a deeper understanding of the concepts of growth and profitability, a literature study was first conducted to establish influencing factors for these. With a clear basis for strategy and market influence as main drivers, a theoretical basis for strategic positioning and growth strategies were then identified, strengthened by research showing how industry factors affect the context and how SMEs specifically are affected. For strategic positioning, cost leadership, differentiation and focus strategies were examined. Furthermore, the growth strategies were divided into organic and non-organic. Market penetration, market development, product development and diversification were investigated for organic growth strategies. The non-organic strategies dealt with two different types of acquisitions: consolidating acquisitions and diversifying acquisitions. These types of acquisitions were then supplemented with further studies on resource and synergy perspectives in acquisitions. Based on these theoretical areas, an analytical model was created with associated research questions to enable answers to the purpose of the study. In order to nuance the theoretical perspective, qualitative interviews were conducted with company executives with backgrounds in different parts of the wood industry. A variable-based cross-sectional analysis of collected empirical data was conducted to compare the different interview subjects' perspectives on the established theoretical concepts, in order to put these growth strategies in context with SME's in the Swedish wood industry. The study showed that the theoretical frameworks were not fully applicable in the wood industry, which resulted in an updated framework that considers the specific conditions of the wood industry. The study shows that it is essential that SMEs work with clear niches as a foundation and as a target for strategic positioning. This position is usually achieved through customer engagement, value adding and market knowledge. The study shows that it is essential, especially from a long-term perspective, that SMEs have clear organic growth strategies. In addition, companies can supplement the organic operations with non-organic strategies, which aim to strengthen the strategic position and create better conditions for future organic growth. Organic growth strategies fall into two categories for the wood industry: sales-oriented and value adding-oriented, where value adding strategies are the leading strategies for successful SMEs today. Sales-oriented strategies place requirements in the categories of raw material supply, market segmentation, and the correct use of sales channels. Value adding strategies place demands on customer engagement, ensuring raw material quality and establishing refined products in new markets. Non-organic strategies, both consolidating and diversifying, are well-used and potentially successful for SMEs in the wood industry. Furthermore, it is clear that diversification and consolidation through acquisitions are not necessarily separate, but should instead be encouraged to be carried out in symbiosis. Acquisition strategies have specific activities linked to the establishment of acquisition strategy, target search, analysis of identified targets and ensuring key personnel.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-166062 |
| Date | January 2020 |
| Creators | Larsson, Pontus, Möller, Fredrik |
| Publisher | Linköpings universitet, Institutionen för ekonomisk och industriell utveckling, Linköpings universitet, Institutionen för ekonomisk och industriell utveckling |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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