Strategies in declining industries
Master thesis
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Date
2017Metadata
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- Master of Science [1622]
Abstract
An increasing pace in globalization and technological innovation has changed
industry landscapes in different sectors. In fact, a growing number of industries
are characterized by rapid decline. While there has been much research conducted
about life-cycles and its respective stages, knowledge of industries operating in
the decline stage has received less attention.
The aim of this research is to discover which types of decline exists, which
strategies are available and appropriate to cope with decline, through an
investigating of the Norwegian Pulp and Paper Industry. In order to answer these
questions, an examination of the theoretical approaches within Strategy is
conducted, more specifically the perspectives of Industrial Organization within
Strategy and Population Ecology. Applying these two perspectives in the context
of the Norwegian Pulp and Paper Industry allows the identification of the most
suitable perspective.
The research is primarily qualitative in nature, through a case study approach.
Information is gathered by conducting twelve in-depth interviews with informants
from all major companies representing the Norwegian Pulp and Paper Industry.
Our findings suggest that the intuitive perception that the Norwegian Pulp and
Paper Industry as a whole faces declining demand is incorrect. More than half of
the industry is in fact enjoying growth, and the remaining companies clustered at
the mature and decline phase. It appears that companies operating in growing
segments appear to be more proactive and fits better to the strategies representing
Industrial Organization within Strategy. In contrast, companies operating in
mature and declining segments seem to be more reactive, and strategic
adjustments on the basis of Population Ecology seem more appropriate.
Description
Masteroppgave(MSc) in Master of Science in Business, International business - Handelshøyskolen BI, 2017