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U N I V E R S I TAT I S O U L U E N S I S

ACTAC

TECHNICA

U N I V E R S I TAT I S O U L U E N S I S

ACTAC

TECHNICA

OULU 2012

C 416

Ville Isoherranen

STRATEGY ANALYSIS

FRAMEWORKS FOR

STRATEGY ORIENTATION

AND FOCUS

UNIVERSITY OF OULU,

FACULTY OF TECHNOLOGY,

DEPARTMENT OF INDUSTRIAL ENGINEERING AND MANAGEMENT

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A CTA UNIVE RS ITA T I S O UL

C Techn i c a 41 6

VILLE ISOHERRANEN

STRATEGY ANALYSIS

FRAMEWORKS FOR STRATEG

ORIENTATION AND FOCUS

Academic dissertation to be presented with t

the Doctoral Training Committee of TechNatural Sciences of the University of Oul

defence in OP-sali (Auditorium L10), Linnan

April 2012, at 12 noon

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Copyright 2012

Acta Univ. Oul. C 416, 2012

Supervised byProfessor Pekka Kess

Reviewed by

Professor Karl-Erik MichelsenDocent Tauno Kekle

ISBN 978-951-42-9787-8 (Paperback)ISBN 978-951-42-9788-5 (PDF)

ISSN 0355-3213 (Printed)

ISSN 1796-2226 (Online)

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Isoherranen, Ville, Strategy analysis frameworks for strategy orien

focus.University of Oulu, Faculty of Technology, Department of Industrial EngManagement, P.O. Box 4610, FI-90014 University of Oulu, Finland

Acta Univ. Oul. C 416, 2012

Oulu, Finland

Abstract

The primary research target of this dissertation is to develop new strategy analysis

focusing on analysing changes in strategic position as a function of variations in life

time/typology/market share/orientation. Research is constructive and qualitative b

case study methodology being the adopted approach. The research work is car

compilation dissertation containing four (4) journal articles.

The theoretical framework of this dissertation is built from strategy analysis, as

strategy orientation and typology theories. Strategy analysis focuses to examining th

business positioning; understanding the external and internal factors that influence

orientation. In strategy analysis, several frameworks or tools can be used. The SWO

Forces, Four Corners, Value Chain, and Blue Ocean strategy profile analysis fra

introduced in this research. Strategy orientation or focus can be described as th

attributes of a companys strategy, which directs decision making and orients the ac

a company towards a specific course. Using strategy orientation or focus as a means

and guiding decision making fosters an environment conducive to strategizing, there

the formulation of the actual strategies followed by the company. In this dissertat

and Snow (1978) strategy typology is introduced along with market orienta

orientation, technology orientation, and customer orientation (focus).

This research contributes to existing literature in that it provides a set of stra

frameworks. Each of the frameworks answers a specific research question within

target. The frameworks created are life cycle with a strategy typology framewo

strategy orientation framework, strategy orientation framework with market share

orientation with a typology framework. All these frameworks can be used individua

they build an analysis toolbox that can generate valuable information from

developed strategy analysis frameworks are tested with two case companies strat

taken from publicly available annual reports. The case companies are Nokia and Am

results show that the developed strategy analysis frameworks can generate new

regarding case businesses strategy, and detect changes in strategic positions.

The theoretical implications of this dissertation contribute to research on strategy

are a result of combining the perspectives adopted in the strategy analysis framewo

of the strategy orientation domain, thereby creating new strategy orientation analysi

Areas for further research include the linkage of business success to orientations tr

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Isoherranen, Ville, Strategian analyysikehikot strategiseen suuntaumis

Oulun yliopisto, Teknillinen tiedekunta, Tuotantotalouden osasto, PL 4610,

yliopisto

Acta Univ. Oul. C 416, 2012

Oulu

Tiivistelm

Tmn tutkimuksen tavoitteena on kehitt uusia strategian analyysikehikoita, joitt

on tutkia muutoksia strategisessa asemassa. Muutosten lhteen voivat olla vaihtel

ajan/typologian/markkinaosuuden tai orientaation suhteen. Tutkimus on konstrukdullista, kytten case-tapaus menetelm. Tutkimus on toteutettu julkaisuvitsk

en nelj (4) tieteellist julkaisua.

Tmn tutkimuksen teoriaosuus on rakennettu strategia-analyysin, strategisen

sen ja typologian teorioista. Strategia-analyysissa tutkitaan yrityksen strategisen

vuutta, pyrkien ymmrtmn ulkoisten ja sisisten tekijiden vaikutuksen asemaa

an suuntautumiseen. Strategia-analyysissa voidaan kytt useita analyysikehikoi

ja. Tmn tutkimuksen teoriaosuudessa esitelln SWOT, PEST, Five Forces, F

arvoketju ja sinisen meren strategian analyysikehikot. Strategiseksi suuntaumiseksmiseksi voidaan luonnehtia niit strategian piilevikin ominaisuuksia, jotka tosias

ptksentekoa ja suuntavat yrityksen toimintoja kohti tietty pmr. Strategin

minen tai keskittyminen ohjaa yrityksen todellisen strategisen suunnan mrittmis

sen teoriaosuudessa esitelln Miles ja Snown (1978) strategiatypologia, kuten my

suuntautunut, tuotesuuntautunut, teknologiasuuntautunut ja asiakaskeskeisen strat

piirteet.

Tmn tutkimuksen tuloksena on syntynyt kokoelma strategian analyysikehik

rakennettu analyysikehikko vastaa erilliseen tutkimuskysymykseen tutkimustavo

Rakennetut kehikot ovat elinkaarimallin ja strategia typologia -analyysikehikko, n

strategisen suuntautumisen analyysikehikko, strategisen suuntaumisen ja markkina

lyysikehikko sek strategisen suuntautumisen ja typologian analyysikehikko. Kaikk

koita voidaan kytt erikseen strategian analysointiin. Yhdess nm kehikot

arvokkaan analyysitykalupakin. Kehitettyj strategian analyysikehikkoja on te

case yrityksen strategia-aineistolla, jotka ovat olleet saatavilla julkisista vuosikerto

Case yrityksin ovat Nokia ja Amer. Tutkimustulokset osoittavat, ett kehitetyt an

pystyvt tuottamaan uutta tietoa case yritysten strategiasta ja havainnoimaan muut

sessa asemassa.

Tmn tutkimuksen tulokset luovat uutta tietoa strategisesta analyysista. Tutk

strategia-analyysin ja strategisen orientaation tutkimusta, ja luo uusia strategisen

sen analyysikehikoita. Jatkotutkimuskohteina voivat olla niin yrityksen liiketaloud

tyksen suhde strategiseen orientaatioon muutosstrategiat sek asiakaskeskeisyys o

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Acknowledgements

My interest in studying and school began to amplify in the la

complementary school from classes 7 to 9. This growing interest orig

the process of growing up and surviving the demands of the school w

the simple observation that learning new things is exciting. I have a

reading and truly value my growing library. My GPA rose from 8.2 to

years of study. Today, that experience seems to reflect quite a remarkone that transformed my life. I devoted hours of hard work, reading,

most of all, concentration. The rise of my GPA continued in high sch

earned a mark of 9.8 owing to my performance in different subject

have never considered myself gifted. Mathematics and physics h

demanded hard work from me, and I found languages somew

Nevertheless, language was not the discipline I chose to pursue after

and after years of military service.

My journey is the result of hard work, but it is also supported

chance, as well as the right people in my life. My admission into

believe, was a product of both chance and encountering the right p

right time. I remember reading an industrial engineering and m

procedure at the University of Tampere. It was well crafted because

both business and technology. My admission into the University o

facilitated by two factors: the visit duringAbipivtat the University

that my good friend Janne had twin brothers studying at the Oulu

Faculty of Technology. Thanks Janne for the accommodation and f

trusted co-driver during the car trip to the University exams! I wou

made it without you. Ailas presentation during these days served as a

to Tuta. Thanks Aila!Years of study at the University of Oulu and my rapid graduation

years (in my last year, I was a part-time employee at Nethawk Oy) a

the result of diligence, but I want to thank Professor Harri Haapasalo,

one of his first presentations, that the best people graduate in three

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assignment. My endeavour has since then been followed by

various management and senior management positions at NokThe idea of completing a doctoral dissertation has b

graduation. Even before that, I remember looking at p

ceremonies and the actual dissertation of my late godmo

Completing a dissertation seemed worth pursuing. The spark

to do the work is my desire to thank Professor Pekka Kess, w

the world of strategic management, set the empirical materresearch, offered his time to support and review my work, an

through academic (and sometimes, non-academic) roads. Tha

This journey really began as a walking journey in the ol

Camino do Santiago, in north-western Spain. With every st

than 30 km during the best days, over 100 km in total), I re

something to contribute to the academic world. I found the de

a doctoral dissertation. This event triggered the process, wh

today. An indispensable guide to the practical art of writing

has been the step-by-step dissertation writing instruction ma

Department of Industrial Engineering and Management.

Finally, the reason I accomplished all of the above is bec

people in my life, my ecosystem. First of all, I want to than

companion and source of support during military service, th

studies, and early parts of my career. The biggest gratitud

would never have endured without your love and support (I

here). Warmest thank you! My family, my mother Irma and f

the foundation of the life that I built. Thank you for giving m

reach for my dreams. During the last years, I have been su

Maria, which I offer my humble thanks!I also want to express gratitude to Nokia Oyj for suppo

part the corporations personnel development activities in t

term development agreement. This program afforded me th

pursue academic merits, as well as reap the rewards of th

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List of abbreviations and definitions

Abbreviations

GSM Global System for Mobile Communications

PEST Political, Economic, Socio-cultural, Technology

R&D Research and Development

RQ Research QuestionSWOT Strengths, Weaknesses, Opportunities, Threats

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List of original publications

I Isoherranen V, Kess P, Phusavat K & Lin B (2011) Strategy changes

life cycle framework and strategy typology. International Journal of Ma

Enterprise Development 11(24): 203211.

II Isoherranen V & Kess P (2011) Strategy orientation analysis in the mob

business. Modern Economy 2: 395402.

III Isoherranen V & Kess P (2011) Analysis of strategy focus vs. marke

mobile phone case business. Technology and Investment 2: 134141.IV Isoherranen V & Kess P (2011) Analysis of strategy by strategy

orientation framework. Modern Economy 2: 575583.

These articles have been published and underwent a double blind

author of this dissertation is the primary author of all the aforementio

publications. The author is responsible for formulating the researc

building the theoretical foundations, collecting and analysing th

materials, and articulating the research contribution. The co-auth

provided feedback and handled the practical logistics involved in p

academic journals.

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Table of contents

Abstract

Tiivistelm

Acknowledgements

List of abbreviations and definitions

List of original publications

Table of contents

1 Introduction 1.1 Background and research environment ...................................1.2 Objectives and scope ...............................................................1.3 Research approach ..................................................................1.4 Research process and dissertation structure ............................

2 Theoretical framework 2.1 Strategy analysis ......................................................................

2.1.1 SWOT analysis ..............................................................2.1.2 PEST analysis ................................................................2.1.3 Five Forces analysis .....................................................2.1.4 Four Corners analysis ....................................................2.1.5 Value Chain analysis.....................................................2.1.6 Blue Ocean strategy analysis .........................................

2.2 Strategy orientations ................................................................2.2.1 Strategy typology .........................................................2.2.2 Market orientation in strategy .......................................2.2.3 Product orientation in strategy .......................................2.2.4 Technology orientation, technology push in strategy ...2.2.5 Customer focus in strategy ...........................................3 Research contribution

3.1 Article I results .........................................................................3.2 Article II results ......................................................................3.3 Article III results ......................................................................

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4.4 Recommendations for further research .......................5 Summary References

Appendix

Original publications

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1 Introduction

1.1 Background and research environment

Research on strategic management has a long history, yet no sin

definition of strategy exists. Minzberg et al. (1998) define strategy as:

a plan, which is a direction, a guide, or a course of action into the

a pattern, which points to consistency of behaviour over time;

a position, which places specific products in particular markets;

a perspective, which refers to the fundamental manner of ac

goals; and

a ploy, which is a specific manoeuvre intended to outwit competit

The fundamental aspects of what strategy brings to businesses are (

al. 1998):

strategy sets direction;

strategy focuses effort;

strategy defines the organisation; and

strategy provides consistency.

Through the years, strategy has been classified by several scholarcommon and widely used by business executives are those introduc

(1985). The three main strategy categories defined by the author are

create and maintain competitive advantage:

cost leadership strategy;

differentiation strategy; and

segmentation strategy.

These generic strategies are defined along two dimensions: strategi

strategic strength. Strategic scope is a demand-side dimension and lo

size and composition of the market that the business is targetin

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business realm with very little competition, if any. Doz

introduced the concept of Fast Strategy, in which the agilityintense global competition is highlighted. Two schools o

currently dominate: market-based (demand-based) strategie

strategies. Examples of market-based strategies can be found

of Porter (1985) (differentiation or cost leadership), and tho

(core competencies) viewpoints are evident in the work of

(1994).The current research contributes to the field of strateg

strategy analysis by analysing strategy characteristics, inte

success factors. It aims to build new analysis frameworks as

thereby creating new tools for detecting strategic focus or

changes that such focus undergoes over time or as a factor of

or market share. The analysis results should also prove valuab

knowledge on strategic management and analysis research

analysis results for the mobile phone case material brin

information to the highly topical and discussed strategic cha

mobile phone industry.

1.2 Objectives and scope

The focus of this research is within strategic managemen

analysis of strategy. The environment of strategy analysis is

in the highly competitive, global high-technology areas,

competitive advantage are rapid and gaining a leading posit

difficult or even impossible to secure.

The research questions as presented in the four journdissertation compiles are listed in Table 1.

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Table 1. Research questions from the journal articles.

Article # Research Questions (RQs)

I a) Does the case business follow the s-curve life cycle framework?

b) How does the case business strategy change in the different phases

cycle? What is the feasible framework for the analysis?

II a) What are the characteristics of the technology orientation, market or

customer focus, and product focus in strategy?

b) What is the framework to analyse this four-way orientation in the cas

strategy?

III a) What is the framework for analysing strategy orientation vs. market s

b) How does the case business strategy orientation change in relation t

share?

IV a) What is the framework for analysing strategy orientation with strateg

b) How does the case business strategy orientation and typology chang

The primary research target of this dissertation is to develop

analysis frameworks, focusing on analysing changes in strategic

function of variations in life cycle s-curve/time/typ

share/orientation.

The primary research target can be presented with the followi

questions (RQs), which are based on the synthesis and summary of t

taken from the journal articles:

RQ1: What analysis framework is feasible for examining the

strategy typology over a life cycle?

RQ2: What analysis framework is feasible for examining strategy

and its changes?

RQ3: What analysis framework is feasible for examining strategy

in relation to market share?

RQ4: What analysis framework is feasible for examining strategy

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The purpose is to create such analysis tools and framewo

new information, clarity, and an indication of the key competitive strategy in fast-changing and disruptive high-t

The cross-dependencies of different strategy orientations are

the focus shift from one strategy position or orientation to a

focus and context are illustrated in Figure 1. This resear

develop new strategies; rather, its focus is within strategy an

frameworks are essential tools for positioning strategy focbuilding on the information derived through the frameworks.

Fig. 1. Research focus and context.

The first journal article responds to the first research quest

flow of new products, the ever-shortening product life cycles

technologies are essential characteristics of glo

telecommunications ecosystems. These attributes compel

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Moore 2000, Cusumano et al. 2006) In the Internet age, many traditio

oriented companies are searching for new growth opportunities frservices. Many strategies that were successful in previous life cycle

become the reasons for failure in the next (Moore 2000). This situat

huge strategy creation challenges to many high-technology compani

founded before the advent of the Internet. They need to analy

technology life cycle position, which is in many occasions the sa

company position, and their strategic position. The typology presentet al. (1978) was considered feasible basis for creating analysis tools

curves given its nature and because it has been referred to in man

studies (e.g. Slater & Narver 1993).

The second article responds to the second research question. Th

power of buyers in highly competitive markets forces companies

closer relationship with customers to maintain their business and c

added solutions, thereby earning more revenue from their custome

Whiteley 1991, Thompson 2000, Gailbraith 2005). Strategy creation

competitive market has been discussed by Porter (1985), Hamel a

(1994), Moore (2000), and Kim & Mauborgne (2005). A technol

company strategy is based on the technology assets or skills that a firm

The goals of such companies are to push new technology to market

winning strategy by being the first to deploy this technology or b

company that deploys the most advanced technology in the ongo

technology innovations (e.g. Hamel & Prahala 1994, Moore 200

orientated companies, focused on market pull, make a long-term com

understanding customer needs and therefore develop innovative

discovering hidden customer needs and new markets (e.g. Slater & N

Day 1995). Enterprises in all industry areas want to be more custoCustomer focus in strategy can, for example, manifest as mass cust

personalisation strategies (Tseng & Piller 2003). Customer focus ca

an organisational strategy to respond to customers expressed deman

Narver 1998). A product-focused strategy can be viewed as an intern

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and an empirical study is conducted by analysing case busine

constructed analysis framework.The third article answers the third research question.

(technology orientation, technology push; market orient

customer focus; and product focus) and its relationship t

discussed. The analysis frameworks are built from literatur

empirical study is carried out by analysing case business

developed framework.

The fourth article answers the fourth research question.

presented by Miles et al. (1978) proposes four distinc

classification: prospectors, defenders, analysers, and reacto

three can be successful in the market place, whereas the rea

considered the failure to execute one of these strategies. In th

oriented and product-oriented strategy orientation framewo

context of Miles et al.s (1978) strategy typology by b

framework of these theories. The empirical focus is to

businesses strategies by using the synthesised framework.

Table 2 summarises the articles and combines them w

research questions as presented in the objectives section.

Table 2. Overview of articles and research questions.

Article # Title Re

I Strategy change analysis using life cycle framework and strategy

typology

RQ

II Strategy orientation analysis in the mobile phone case business RQ

III Analysis of strategy focus vs. market share in the mobile

phone case business

RQ

IV Analysis of strategy by strategy typology and orientation

framework

RQ

1.3 Research approach

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creativity, innovation, and heuristics. The first two are associated w

solving; that is, determining the answers to the research questions.approach comes from the systematic, step-by-step development of th

models, after which they are tested and the functionality of th

solutions is improved. The case study approach is considerably re

testing and improvement technique. It is the empirical component us

the applicability and actual functionality of solutions (Olkkonen 1993

The phasing of the constructive research approach in this stu

follows the phase model presented by Kasanen et al. (1993). The fi

identify an interesting research problem (strategy analysis),

understanding of the topic (literature study), then initiate an innovat

construct the model that answers the research questions (analysis f

After this, we proceed to testing the developed model (empirical case

then closing with a theoretical feedback loop and discussion part.

Fig. 2. Research approach (based on Kasanen et al. 1993).

1.4 Research process and dissertation structure

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1865. In 1995, it focused on telecommunications, and on mo

and services in 2007 when the network systems business mNokia Siemens Networks was then established. Nokia is

mobile telecommunications and has dominated the telecom

2009, it shipped more than 430 million units of mobile devic

1.1 million units a day, consequently reaching an estimated m

of the mobile devices market. The transformation of Nokia f

comprises several different business areas (car tyres, cables

electronics) to one that focuses on telecommunications ha

Nokia made a strategic decision to concentrate on one of its

was able to significantly grow because of this strategic choic

choice has been followed by extensive sales growth for Nok

thereby earning the company a leading position in the mobile

success and growth make Nokia mobile phone business

example in studying strategy orientation during life cycle ph

companys ability to maintain competitiveness. In add

transformation of Nokia from a mobile phone-focused comp

Internet-based services also makes Nokias mobile phone

research case for strategy orientation in reference to life cyc

strategy was extensively discussed by Doz & Kosonen (2008

of strategic agility. Other academic papers written about Norange from open innovation and innovation networks (Dittric

to the fundamental change that Nokia brought to the telecomm

(Steinbock 2001).

The second case company, Amer, operates internationa

marketing and manufacturing branded sports equipment. T

Amer Group, is a publicly listed enterprise established in 19history of delving into multiple business areas, such as tobacc

goods, and car importing. The company divested its entire pa

and sold its publishing and printing division. Later in th

acquired sports equipment manufacturer Atomic to strength

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strategic management because this research extends the theme of

strategy research. The review phase was followed by the narrowing research focus given that the realm of strategic management i

multidimensional in nature. Strategy analysis was considered an inter

especially given the transformations that characterise case busine

After topic selection, empirical data were collected from the case bus

the analysis frameworks were created on the basis of literature synthe

The empirical data from the case business Nokia consisted o

reports from years 1990 to 2009. A time span of nearly 20 years is

sufficiently long in studying rapidly changing telecommunications

deriving extensive knowledge on case business strategy developm

reports were available in printed format in Finnish, and in electronic

in Finnish and English. Both the printed and electronic versions were

rich insight into case business strategy.

For Amer, empirical material that covers 1994 to 2008 was colle

span of almost 15 years is considered long enough to provide a per

the research. The annual reports were available in electronic format in

The rationale for selecting the annual reports as the source of em

was considered from several viewpoints. First, the annual reports

available, making the research replicable. Second, the public availa

annual reports guarantees that the facts and statements were subjectanalysis, and reasonably ensures that the statements are reliable. Th

empirical material is based on public annual reports no confident

should arise from using this material.

The final phase involved conducting analysis using the develo

frameworks. The frameworks and the analysis results achieved by us

presented in the research contribution chapter. The original journalincluded at the end of this dissertation.

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2 Theoretical framework

Strategic management can be regarded as built from three main

strategy analysis, which seeks to understand the strategic pos

organisation; strategic choice, which is all about listing the possible s

action, evaluating them, and choosing amongst alternatives; a

implementation, which focuses on planning the manner by which str

into action, and managing the changes required (Johnson & Scholes 1

Fig. 3. Strategic management components (based on Johnson & Scholes

2.1 Strategy analysis

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2.1.1 SWOT analysis

SWOT analysis (Figure 4) is a classical strategy analysis

fields: strengths, weaknesses, opportunities, and threats (

2004). According to Hill & Westbrook (1997), SWOT an

planning originated from the academics of Harvard Business

In particular, these scholars defined good strategy as one

between the external situation of a company and its in

characteristics. This definition influenced SWOT framew

advances the search for this fit as its core idea.

Fig. 4. SWOT strategy analysis framework.

The SWOT analysis framework has two distinctive parts. Finternal strengths and weaknesses of a business, and then p

view of opportunities and threats (Luffman et al. 1996). T

items in this four-field framework can be aided by a qu

designed for this purpose (Lindroos 2006). SWOT analysis

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matrices can be used; for example, current and future states can b

separate frameworks (Lindroos 2006). The SWOT analysis matrix enhanced by introducing aspects of the latest management theori

2001). The rating and selection of the items for classification under

categories can be based on numeric scores or weighting of items on

their influence. The challenge, therefore, lies in ensuring an objecti

(e.g. Evans & Wright 2009, Hosseini-Nasab 2011). Several

organisations, such as universities and government offices, apply

strategy analysis (Metso 2011). Hill and Westbrook (1997), howev

that many SWOT applications show similar long lists of characteristi

meaningless descriptions, and the failure to prioritise these chara

verify selected points. These observations suggest that SWOT analy

highly effectively approach. Its most worrying aspect is that its o

properly used in subsequent stages of the strategy process, thereby c

on the reasonableness of its use in strategy analysis. Additionally, cu

competitive and unstable markets present difficulties in using

framework with difficulties given the rapidly changing and dynam

selected strengths or weaknesses. The reason SWOT analysis is ext

continuously used is that it is straightforward and necessitates little

(Hill & Westbrook 1997).

2.1.2 PEST analysis

The PEST analysis framework considers political, economic, socio-

technological aspects (see Figure 5 for an example). The framework

of four segments. The first lists the political aspects that are consi

analysis. The second, third, and fourth segments identify econocultural, and technological features. A target companys strategy

against these elements when performing strategy analysis (Johnson

1993b).

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Fig. 5. Example of PEST strategy analysis framework (based on

1993).

PEST analysis can be applied in strategy analysis specif

understanding the drivers of long-term change. The four asp

help determine why and how these changes occur in an indu

term trends underlie such variations. These themes comprise

globalisation, convergence of consumer tastes, rapid techno

so on. PEST analysis enables the examination of competitor d

these aspects. This examination affords enterprises a thoroug

how changes may affect competitive position in marketsa

given that the effect of change can vary depending on com

skills, and market position.

2.1.3 Five Forces analysis

O f h ll k l i f k i

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Fig. 6. Porters five competitive forces (based on Porter 1980).

Suppliers can command power over an industry by introducing price

by reducing quality level. Powerful suppliers can therefore introduce

from which companies in the industry cannot recover, result

profitability. The power of buyers comes in the form of demand fo

and high quality, as well as inducing competition amongst firms. Tnew entrants that bring new capacity and lower prices heavily

companys strategy within the industry, similar to how the threat

products draws part of demand away from the products that

d Th t l t ti l f th t t d d f

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stronger, creating a weaker strategic position for the company

(Porter 1980, Werther & Chandler 2011, Thompson 1993).Porter also states that the competitive situation of a firm

competition within the industry itself. This industry rivalry d

and industry structure; hence, various industries can have si

levels of internal competition. The outside forces that influen

are relatively important because they highlight the differ

companies to respond to these forces (Porter 1980).

Porters strategy analysis framework is constrained by

stem from the definition of industry and competition as a ze

the idea that a customer or suppliers advantage is always gain

a company dictates that in Porters model, a company should

its stakeholders to create competitive advantage. Second,

missing several influential factors and stakeholders in th

governments or local communities. Third, Porters strategy

fails to differentiate companies on the basis of their characte

leaves unanswered questions as to the strategy analysis

companys internal aspects, drivers, and organisational orie

Chandler 2011).

2.1.4 Four Corners analysis

Another strategy analysis framework proposed by Porter

Corners model, which focuses on understanding competitor

also be used for the self-analysis of a companys own stra

this framework is illustrated in Figure 7.

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Fig. 7. Porters Four Corners analysis framework (based on Porter 1980).

The analysis framework is composed of four diagnostic components:

current strategy, assumptions, and capabilities. Understanding

components provides insight into competitors future strategies. Each

can carry a set of questions and characteristics for the purpose of ana

1980).

The future goals section is derived from the important pers

companies have different goals and thus pursue varied strategic

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The assumptions section presents another interesting vie

strategy. This perspective is related primarily to two aspassumptions about a rival company and a competitors

industry and the other companies in it. This component can

and characteristic elements such as perceived industry forc

relative position regarding these. Similarly, beliefs about co

influence, as well as regional, cultural, and national differenc

as orientation towards product quality at the expense of unit c

The third component of the analysis framework is a

strategy, which may be explicit or implicit. The aspects to co

creation path, business investment focus, and the overa

companys future direction. In the simplest manner, the strate

this section can be regarded as built from key visible operati

competitor has in place (Porter 1980).

The fourth component is capabilities, which determine a

to respond to strategic moves or industry changes. This sectio

list of characteristics to be used as bases for analysis. S

marketing skills, overall education of the employees, co

copyrights, or the financial strengths of a competitor. A SW

approach can be used to gather information, which is then in

section to complete the Four Corners strategy analysis (PorterWhen completed, the analysis framework can be used t

and defensive scenarios of a competitor or if the analysis is in

self-assessment, it can focus on creating strategic positionin

company (Porter 1980).

2.1.5 Value Chain analysis

Value Chain analysis, also introduced by Porter (1980), i

designed to enable understanding of how primary and supp

used to create value. It is a starting point for comprehending

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needed to create value for customers, either through a product or

Value Chain analysis tool therefore presents an opportunity to cchain-of-events value chain with that of competitors, given valuab

strategy analysis (Pitts & Lei 2006).

Fig. 8. Example of Value Chain analysis tool (based on Porter 1980).

Value chain activities are divided into primary and support activit

activities are directly linked to the product or service that a company

to its customers. It basically involves transforming raw materials in

benefits. Support activities serve as a supplement to primary ac

company carries out a set of tasks. Together, these make up a firm

chain and its foundation for competitive advantage. For the purpos

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2.1.6 Blue Ocean strategy analysis

The Blue Ocean approach begins from the statement tha

eliminate competition with its traditional rivals because this i

company can succeed in the future. Two conceptual fram

determined: red oceans and blue oceans. Red oceans are exis

and markets, whereas blue oceans are those that are unkn

until they are discovered or created. In red oceans, the bou

areas are defined and commonly accepted. The rules for com

(Kim & Mauborgne 2005).

When competing in the red ocean, a company focuses on

share as possible of existing market demand. When num

available in the market, it becomes crowded and the possib

growth are limited. Products become commonplace, and com

sea red. Conversely, a blue ocean is characterised by a potentiplace, the creation of new demand, and potential for highl

Some blue oceans are created at locations highly distant from

but many are created by expanding current industry boun

becomes irrelevant because no predefined rules exist (Kim &

The Blue Ocean strategy analysis tool constitutes tw

strategy profile and the value innovation framework, w

illustrated in Figures 9 and 10. A strategy profile analyses t

the market space; that is, in which areas competitors are inv

competition factors are. Using a strategy profile to plot co

company outcomes in relation to the elements of market c

insight into company value graphs. Value graphs easily plot

of competitors and the differences in companies strateg

Mauborgne 2005).

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Fig. 9. Example of Blue ocean strategy profile analysis tool.

However, a companys transition into a growth path does not hapcomparison with competitors or by offering products or services

differ from those offered by competitors. Changes in strategy profile

shift in focus from competitor benchmarking and examining dem

existing customers to addressing the needs of non-customers. To

shifting its focus, a company can use another analytical tool: the valu

framework (Figure 10). To create new value graphs and eliminate

choose differentiation and cost focus, companies can use four questio

commonly accepted factors can be eliminated? (2) What factor

minimised in relation to the standard approach? (3) What factor

highlighted more strongly in the industry? (4) What new factors shoul

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Fig. 10. Blue Ocean strategy value innovation framework (based

2005).

2.2 Strategy orientations

The young lieutenant of a Hungarian detachment

reconnaissance unit into the icy wilderness. It began t

and unexpectedly continued to snow for two days. The

The lieutenant feared that he had dispatched his ow

However, on the third day the unit came back. Where h

had they made their way? Yes, they said: We cons

and waited for the end. We did not have any maps, equipment with which to ascertain our position or pro

then one of us found an old tattered map in a seldom

calmed us down. The map did not seen to quite fit the t

di d b i W f ll d th d

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A strategy orientation or focus can be described as the underlying at

companys strategy, which directs decision making and orients t

within the company towards a specific course. It serves as an

innovation and guidance in decision making, thereby fostering an

conducive to strategising and formulating the actual strategies follo

company (Cummins et al. 2003).

2.2.1 Strategy typology

Miles et al. (1978) and Miles and Snow (1978) proposed four disti

strategy classification: defenders, prospectors, analysers, and re

classification is based on the assessment of how a company resp

following challenges:

entrepreneurial, which defines an organisations productmarket d

engineering, which focuses on technology choice and pro

distribution processes; and

administration, which involves the formalisation, rationali

innovation of an organisations structure and policy processes.

Defenders are companies that have a stable set of products or s

compete primarily on the basis of price, quality, and service. Defendentrepreneurial problem of how to maintain a stable share of the ma

they function best in stable environments. A common solution to thi

cost leadership, and these organisations achieve success by spe

particular areas and using established and standardised technical

maintain low costs. Defenders also tend to be vertically integrated to

efficiency. These organisations encounter the administrative problem

ensure efficiency; thus, they require centralisation, formal proc

discrete functions. Because their environments change gradually, de

rely on long-term planning. The defender strategy entails a dec

aggressively pursue new markets but rather a drive to seal off a po

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examining the market in a quest for new opportunities. Mo

have broad product or service lines and often promote creati

They face the operational problem of not being dependent on

Consequently, prospector companies prioritise new pr

development and innovation to satisfy new and changing

demands, as well as to create new demands. The adm

encountered by these companies is how to coordinate divers

and promote innovation. Prospectors solve this prob

decentralisation, employing generalists (not specialists), ha

management, and encouraging collaboration amongst differ

units. The prospector strategy can be seen as the most aggres

prospectors, having a reputation as an innovator both in

development is important.

Companies that have the characteristics of both

classifications are called analysers, and they seek a balancechanging domains. Because analyser organisations share

prospectors and defenders, they are confronted with the entr

of how to maintain their shares in existing markets, as well as

exploit new market and product opportunities. These organi

the operational problem of maintaining the efficiency of est

services, whilst remaining flexible enough to pursue newConsequently, they seek technical efficiency to maintain

emphasise new product and service development to remain

market changes. The administrative problem that these compa

how to manage technical efficiency and competitiveness. S

organisations, analyser organisations cultivate collaboratio

departments and units. They are characterised by balancet

defender and prospector organisationand the drivers of

companies are minimising risk whilst maximising opportuniti

Reactororganisations do not have a systematic strategy, o

structure, and exhibit inconsistent and unstable actions. They

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Top management may not have a clearly articulated organisationa

Management does not fully shape the organisational structure an

to fit a chosen strategy.

Management tends to maintain the organisations current strate

relationship despite overwhelming changes in environmental cond

The failure to execute defender, prospector, or analyser strategies ca

an organisations strategy into a reactor approach.

The Miles and Snow typology has been subjected to numerous inand wide-ranging academic discussion. One of the most relevant stud

and Narvers (1993) analysis of typology and product market perfo

authors provided guidance for managers in businesses with differ

orientations, and challenged the reactor definition.

2.2.2 Market orientation in strategy

Brem and Voigt (2009) defined market pull as that characterised by

customer that creates new demand, which requires problem solving.

comes from individuals or groups that express their demands; this im

used in directing focus towards company targets, resources, and activ

the demand can be satisfied. Day (1994) listed market-driven compan

a set of beliefs that prioritises customer interest, the ability to gene

information about customers and competitors, and the ability to

resources for customer value creation. The author added that marke

represents superior skills in understanding and satisfying customers. A

Day (1998), market-driven companies comprehensively understand th

so that they can identify valuable customers. Thus, these companie

strategic choices and implement these consistently. Examples of suchcustomer requirement prioritisation that is in favour of the mo

customers or the service levels offered to these consumers. The chara

market-driven organisations that follow a market-oriented strategy ar

h (1) ff i l i d i (2) f

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product. Slater and Narver (1995) described market orientati

collection of target customers needs and competitors capabi

a market-oriented strategy drives the operational mode an

company to enable the collection and analysis of customer ne

is consistent with that of Hartline et al. (2000), who defined

be organisational culture that creates effectively and efficien

buyers and thus excellent business performance. Slater

described the market-oriented approach as a long-term, proa

understand customer needs, both expressed and latent, an

solutions for ensuring high customer value. At the same ti

companies understand that different types of customers provi

information and that customer voice is only one source of info

formulation. This perspective of balance is a significant par

strategy execution given that it prevents the loss of company

over execution of customisation efforts, which can lead to tidentity and branded assets. The sustainable competitive adv

the market-oriented strategy can be regarded as being

knowledge of customers; the ability to select which cust

capability to offer them a unique product or service that was d

of customer knowledge; and the ability to efficiently and eff

product or service, as supported by strategy focus.

2.2.3 Product orientation in strategy

The largest difference in perspectives between product-

companies is that the strategy of the former is driven by ident

and customers for its product as possible, whereas that of t

listening to its customer in an effort to determine the most s

then integrating these for value-added solutions (Galbrai

(2002, 2005) defined the characteristics of product-centric

different viewpoints. For the strategy orientation, the most im

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products, useful features, and new applications. Organisations are

product creation given that product business units (for example

organisational setup focuses on product profit centres, and the rewar

market share, amongst others. Top management focuses on product

logic is that more product features and capabilities also create more v

driving sales. Priority setting of strategic actions is therefore based o

of products, an approach that corresponds to the product-oriented poin

its main offering. The highest customer priority is given to the m

customers, who use the new features and applications created by

oriented company. This approach is important because the prod

strategy fundamentally focuses on the creation of competitive ad

ultimate product capabilities, making the adoption of new featur

Customers want to take advantage of feature richness, and this des

them from considering other options with fewer features or produ

applications. Thompson (2000) described the transformation jouinward-focused product-driven company via a market-focused com

customer-centric enterprise. The characteristics of a company focu

competencies, with a certain inward-focus, can also be identified

product-oriented companys strategy (e.g. Hamel & Prahalad 1994).

The aspects of organisational setup and reward priorities, toget

measurement principles of success, are essential aspects to consideroriented company measures its success by market share position, num

products created, and the capability to lead by latest product features

applications.

In this research, a product-focused or product-centric strategy i

synonymous to a product-oriented strategy.

2.2.4 Technology orientation, technology push in strategy

Technology push is a term used for the approach in which te

innovation is pushed to the market beginning from internal deve

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explicitly expressed. The characteristics of technology orient

investments, the drive for substantial progress in technolog

long-term focus and duration of development projects. Apart

market demand, that about a technology itself, its feasibilit

exists (e.g. Lynn & Heintz 1992, Hamel & Prahalad 1991, Sco

Fig. 11. Technology push vs. market pull (adapted from Martin 19

According to Walsh et al. (2002) the technology push strateg

companys internal competencies, or on the external si

technology. Internal development can lead to new tec

improvements over existing ones, and the technology push

external sources causes the creative destruction of old techn

technology-oriented strategy is aimed at creating competit

technological advancements and the adoption of new techno

2000).

2.2.5 Customer focus in strategy

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basis of a companys inbuilt values, behaviour models, and compete

in the end transform a companys culture into a customer-focused

2007). Slater and Narver (1998) differentiated the customer-led from

oriented strategy by stating that the former is viewed as a reactive a

focuses on the expressed desires of customers, and fails to deliver

competitive advantage by failing to recognise unexpressed

requirements, which can be a source of innovation. Connor (1999)

aforementioned authors approach for its neglect of firm size and th

survival needs of businesses as factors; these approaches should be

response, Slater and Narver (1999) clarified their position on stating t

the market learning continuum, and asserted that exclusively c

companies do not achieve the full benefits of being market ori

compared the customer-centric approach with Miles et al.s (1978)

which any chosen strategy may be successful. In the market-orien

continuum, however, the more advanced businesses perform better. H(2000) defines customer orientation as a set of beliefs that prioritis

interest, but that this prioritisation should be balanced with other s

requirements. The authors also combine the aspects of customer ori

market orientation. Kelly (1992) concludes that customer focus can

mutually beneficial long-term relationship with customers.

Mass customisation and personalisation approaches are thcharacteristics of customer focus at the strategy level. The basic prem

customer-centric in mass customisation lies in satisfying individu

requirements without any significant increase in production or distrib

The competitive advantage of mass customisation is based on co

efficiency of mass production with differentiation possibil

manufacturing, focused factory production, flexible specialis

manufacturing, and customer relationship management can also be a

strategies for fulfilling changing customer needs (Tseng & Piller 2003

Mass customisation characteristics include a stable process th

invented for each customer but a core process that is sufficiently flexi

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Personalisation characteristics include frequent c

interaction with customers. The process is information inte

especially adopted by Internet-based service businesse

customers is transformed into product features or attributes.

key in the personalisation strategy because recommendation

customer attributes can be used to propose a set or bundle

products, thereby creating added value for customers with m

capability to deliver personal configuration is one of the cr

building personalisation in strategy (Tseng & Piller 2003).

The customer focus in strategy in the current study is co

characteristics of the customer-centric approach, mass

personalisation.

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3 Research contribution

3.1 Article I results

The first article answers to the research question 1 (RQ1). The develo

analysis framework that combines the life cycle phase and strat

presented in Table 3. This framework combines the life cyc

introduction, growth, maturity, and declinewith the strategy types

Miles et al. (1978). The strategy types fitted to this framework a

prospector, analyser, and reactor. The characteristics used in the

presented in Table 4.

The article shows that the developed strategy analysis framework

valuable information on case business strategy development during

cycle phases.

The case business net sales figures indicate that the case business

selected life cycle framework: the s-curve with phases. The introdu

can be considered as that running from 1990 to 1994. The growth p

regarded as the stage observed in 1995 to 2000. Before 1995 a signif

was observed, but in the review of total growth during the total tim

years, the period before 1995 is considered part of the introduction

present research. The period from 2001 to 2006 is considered thphase, which is characterised by slow growth. The case business is

being in the decline phase from 2007 onwards. This phase is char

significant decline in net sales figures.

According to the analysis, the case business strategy from 1990

be categorised as a prospector strategy, a result consistent with th

characteristics of the prospector classification. The case business wa

pursue a newly emerged market space, a development broug

technological advancement in the telecommunications arena. In pa

case business was the first to gain entry into digital wireless communi

form of the Global System for Mobile Communications (GSM) standa

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of regional decentralised organisation further supports

categorisation as a prospector.

In 2001 to 2006, the case business strategy took on de

characteristics. The case business possesses an established set

share is protected by actively pursuing cost leadership

economies of scale. A work process is created to en

deployments, and decisions are made through a formal decis

The case company is also considered an analyser during

characterised as a matrix type of organisation. This organisa

established in 2002 along with the adoption of a highly

understanding.

From 2007 to 2009, the case business strategy was of an

this period, the business exerted efforts to maintain its curren

markets and pursued new business opportunities by acquir

business companies. This approach is consistent with strategthe theory of jumping from the s-curve of product focus to th

focus. The company faces the challenge of maintaining low

position in existing markets and the need for flexibility f

business opportunities. The necessity of product customi

strategic product decisions. The case business operated organ

mode.

Table 3. Strategy analysis framework for life cycle and strategy ty

Lifecycle phase Years Strategy type

Defender Prospector Analy

Introduction yyyy-yyyy Defender

characteristics

Prospector

characteristics

Analy

characte

Growth yyyy-yyyy Defender

characteristics

Prospector

characteristics

Analy

characte

Maturity yyyy-yyyy Defender

characteristics

Prospector

characteristics

Analy

characte

Decline yyyy-yyyy Defender Prospector Analy

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Table 4. Strategy typology characteristics used in the analysis.

Strategy type/dimension Defender Prospector Analyser Reacto

Productmarket domain Narrow and

stable

Broad and

continuously

expanding

Segmented and

carefully adjusted

Possib

Technology goal Cost efficiency Flexibility and

innovativeness

Technological

synergy

Develo

and fin

Structure Functional and

line authority

Products and or

market oriented

Matrix oriented Tight f

3.2 Article II results

The second article answers to the research question 2 (RQ2). Th

strategy analysis framework is presented in Table 5. The framework

analysis and characterisation of the strategy orientation of the case b

the changes it experienced over the examined period. Figure 12

orientation map, which can be used to plot the changes in the four-w

orientation.

The strategy orientation of the case business in 1990 to 1994 is c

by technology orientation, technology push. In the first part of this

business decided to concentrate on the telecommunications business,

explicit sign of a long-term commitment to development within the based market. This move was followed by investments focus on R&D

pursue the newly emerged business opportunities presented by ado

During this period, the case business heavily invested in R&D, as e

the companys decision to open new R&D sites in Oulu and Salo

investments were also considerable during this period. The case busin

pursued advancements in technology to achieve competitive advantagIn 1995 to 2000, the case business continued to have the characte

technology-oriented strategy, which can be seen as the continuance

investments in R&D, followed by focus on the international standa

new technologies The dominant characteristic however was prod

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organisations was also embraced and mass customisatio

example is the customisation of the mobile phone keyboar

Overall, the differentiation is based on actual collected and

requirements.

In 2001 to 2006, the case business continued to adopt a s

but less emphasis on customer focus. The strategy focus se

towards internal development initiatives and the developme

expanding product portfolio. In 2001, 22 new mobile p

launched, and in 2002, 34 new mobile phone models were

2005, and 2006, a staggering 40 new mobile phone models

year. The case business focused on the development of

responding the different customer needs with a large vari

example is the development of colour displays, QWER

megapixel cameras as new high-end features. The case busine

the companys drive to find new purposes for using its produThe decision to establish a new organisational setup of ni

units to optimise economies of scale and drive market share

the established long-term target is characteristic of

organisation.

The period 2007 to 2009 showed indications of change

strategy. The product dimension continued to be strong but thalso began to emerge. The company implemented a strategic

development of Internet-based services (e.g. music and nav

the acquisition of several Internet companies. The more long-

understanding customer needs and delivering holistic soluti

(e.g. the company established a dedicated solutions unit) als

the end of the examined period. Signs of exclusive customis

customers of certain models were also apparent. The com

consistent with customer-focus characteristics. The changes

way focus are illustrated in Figure 13.

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Table 5. Strategy orientation analysis framework.

Strategy orientationcharacteristics

Technologyorientation,

technology

push

Market orientation,Market pull

Customer focus Produc

a) Large

research

and

development

investments

a) Ability to identify

customers

a) Focus on

expressed

customer needs

a) Focu

of the b

b) Drive for

huge

technological

advancements

b) Focus on

customer value

b) Stable

customisation

process with

boundaries

b) Focu

and ne

c) Long-term

focus andduration of

development

initiatives

c) Ability to generate

information aboutcustomers

c) Collecting data

on and therequirements of

customers

c) Crea

of prod

d) Adoption of

new

technologies

d) Long-term

proactive drive to

understand

customer needs

d) Cost-focused

customisation

and

differentiation

d) Inwa

strateg

core c

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Fig. 12. Four-way orientation framework map.

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3.3 Article III results

The third article answers to the research question 3 (RQ3). Th

strategy analysis framework combines the strategy orientation analy

the market share analysis, and builds a new framework that can

examine strategy orientation in relation to market share. The

framework extracts new information and creates a valuable analy

market share-based strategy orientation analysis. The develop

framework and the strategy orientation characteristics used in the presented in Tables 6 and 7, respectively.

According to the article, 1998 to 2000 was characterised by a

oriented strategy, which can be viewed as the continuance o

investments in R&D, followed by a focus on the international stand

new technologies. The dominant characteristic, however, is produ

evidenced by the emphasis on the development of a portfolio of

satisfy the needs of different customer segments. Corporate and p

needs were particularly delineated. The company aimed to devel

product, with strong focus on aspects such as the design and lates

mobile phones. During this period, the company espoused customer

form of regional organisations; mass customisation needs also arose.

of the companys response to this issue is the customisation of a m

keyboard for Chinese users. Differentiation was driven by the vari

bases as different customer requirements were collected. The market

case business expanded strongly in this period, reflecting an increase

to 30.6%.

The strong product focus in the company strategy persisted in 20

and less emphasis was placed on customer focus. The company

concentrate on internal development initiatives and the developexpanding product portfolio. In 2001 and 2002, 22 and 34 new m

models were launched, respectively. In 2003, 2005, and 2006, a rem

new mobile phone models were launched each year. The strategy o

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(e.g. in gaming) was also evident. The company decided

organisational setup of nine product business units to optimis

and increase market share towards facilitating the realisatio

long-term target. This action is a reflection of a product-focus

market share declines in the beginning of the period but rises

the period.

Indications of change in the case business strategy were

2009. The product dimension continued to thrive but em

orientation also began taking place. The company was deter

Internet service division, which was initiated through the ac

Internet-based companies. The more long-term commitme

customer needs and delivering holistic solutions for these ne

the examined period. Signs of exclusive customisation effor

of certain model were also observed. Such company initiative

customer-focus characteristics. The market share of the chighest within the examined period, at 38.6% in 2008.

followed by a decline towards the end of the examined period

Table 6. Strategy orientation and market share analysis framewo

Label Period

1

Period

2

Period

3

Years yyyy-yyyy yyyy-yyyy yyyy-yyyy

Market share-% % % %

Technology orientation Characteristics Characteristics Characteristic

Product focus Characteristics Characteristics Characteristic

Customer focus Characteristics Characteristics Characteristic

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Table 7. Summary of strategy orientation characteristics used in

framework.

Strategy orientation

characteristics

Technology

orientation,

technology

push

Market orientation,

market pull

Customer focus Produc

a) Large research

and development

investments

a) Ability to identify

customers

a) Focus on

expressed

customer needs

a) Focu

of the b

b) Drive for huge

technological

advancements

b) Focus on

customer value

b) Stable

customisation

process with

boundaries

b) Focu

and ne

c) Long-term focus

and duration of

developmentinitiatives

c) Ability to generate

information about

customers

c) Collecting data

on the

requirements ofcustomers

c) Crea

of prod

d) Adoption of new

technologies

d) Long-term

proactive drive to

understand

customer needs

d) Cost-focused

customisation

and

differentiation

d) Inwa

strateg

core c

3.4 Article IV results

The fourth article responds to the research question 4 (RQ4). Th

analysis framework combines the strategy orientation framewor

strategy typology framework of Miles et al. (1978). The findings fro

show that the developed framework can analyse case businesses str

changes in strategy focus, and generate new information in the formanalysis. The created analysis framework is presented in Table 8.

According to the analysis, the mobile phone case business strateg

1994 is characteristic of aproduct-oriented prospector. The strategy

hi i d h b d f h k h

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strategy directed focus towards internal capability develop

securing adequate productisation capacity. This product-

especially evident in the companys establishment of new R&

The mobile phone case business continued to exhibit the

product-oriented prospectorin 1995 to 2000, in which the

operational driver was the creation of a broad portfolio of pro

advanced features. Developing the best product with the lat

was of particular significance. The case business was

technology areas and built efficient product creation capabmarket domain was constantly expanded through the id

customer segments. Thus, the drive from a strategy point o

many customers as possible for the products that the case bus

From 2001 to 2006, the mobile phone case busine

categorised as ofproduct-oriented defendertype. The case

its position as a market leader, and its strategy at this pointposition. It established a product business unit to realise ec

product creation and delivery. During this period, launched

mobile phone models in consecutive years, aiming to create

of products in the industry. These new models contain the late

factors, such as computer-like keyboards for messaging

capabilities.

In 2007 to 2009, the case business can be defined a

analyser. Significant change in the case business strategy w

company searched for new market areas whilst maintaining i

the market where it operates. The productmarket domain w

and the case business operated in matrix mode. The company

build a closer relationship with customers and establish a spec

satisfy their need to obtain the most suitable product. Sim

customisation efforts reflected a rise in prioritising custom

customer information collection.

The second case company follows the product-oriente

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operations needed for search for new business domains. In the exist

areas, the focus was to maintain efficient production and operation

business domains acquired during this timeframe were Atomic (the sk

manufacturer), Suunto, and DeMarini. All of the acquisitions br

product portfolio of the case business, and its strategy was cle

considerable focus on products. The innovation within R&D was dire

improving the existing capabilities of the products and creating new t

solutions to be able to expand the product portfolio. Improvements

characteristics were sought, from new material compositions to prodThe world knows that brands play an essential role in the efforts t

broad and widely known product portfolio.

The strategy of the case company in 2001 to 2008 can be cate

product-oriented defenderstrategy. The company earned the positio

sports equipment manufacturer in the world during this period, and s

a strong financial position. The company maintained this position bwide product portfolio, which was built from summer and winter sp

well as outdoor and indoor sports equipment. This approach was

protect the company against seasonality and other sudden causes of v

weather conditions). The case company focused on building

relationships with retail and distribution, and making sure that s

operations are efficient. The integrated and transparent supply chain

was intended to achieve cost efficiency. The narrow definition o

productmarket domain also supported the perspective of strong fo

competencies and building an unbeatable position within this segm

domain. The company also carried on with its acquisitions to concen

on sports equipment, and divested from the original business area

license manufacturing. The company implemented significant reorgan

searches for efficient cost positions to guarantee competitiveness and

entry into the business domain.

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Table 8. Strategy orientation and typology analysis framework.

Strategy orientation

Strategy typology

Defender Prospector Analyser

Market orientation Strategy focus:

-Delivering most

suitable product for

the customer

Strategy focus:

-Delivering most suitable

product for the customer

Strategy focus:

-Delivering most

suitable product f

the customer

Productmarket

domain:

-Narrow and stable

Productmarket domain:

-Broad and continuously

expanding

Productmarket

domain:

-Segmented and

carefully adjusted

Value Creation:

-Customer value

Value Creation:

-Customer value

Value Creation:

-Customer value

Operational Driver:

-Cost efficiency

-Customer

information

Operational Driver:

-Flexibility and

innovativeness

-Customer information

Operational Drive

-Technological

synergy

-Customer

information

Culture:

-Long-term

proactive drive to

understand

customer needs

Culture:

-Long-termproactive

drive to understand

customer needs

Culture:

-Long-term

proactive drive to

understand

customer needs

Organisation:

-Functional and line

authority

Organisation:

-Market oriented

Organisation:

-Matrix oriented

Product orientation Strategy focus:

-Creating the best

product

Strategy focus:

-Creating the best

product

Strategy focus:

-Creating the bes

product

Productmarket

domain:

-Narrow and stable

Productmarket domain:

-Broad and continuously

expanding

Productmarket

domain:

-Segmented and

carefully adjusted

Value Creation:

-New features and

applications

Value Creation:

-New features and

applications

Value Creation:

-New features an

applications

Operational Driver:

-Cost efficiency

-Creation of portfolio

of products

Operational Driver:

-Flexibility and

innovativeness

-Creating portfolio of

products

Operational Drive

-Technological

synergy

-Creating portfolio

products

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3.5 Results summary

The research contribution of this study is a set of strategy analysis Each of the analysis frameworks answers a specific research qu

contributions are summarised in Figure 14. Each framework c

individually, but together, they constitute an analysis toolbox that c

valuable information from analysis targets. These frameworks can

conditions, evaluate previous developments, and provide insights

development directions.

Fig. 14. Strategy analysis frameworks and research questions.

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4 Discussion

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4 Discussion

4.1 Theoretical implications

The theoretical background of this study is built from strategy analysi

on the strategy analysis frameworks and strategy orientation dom

theoretical synthesis, this dissertation combines the perspectives of

analysis frameworks and strategy orientation, thereby creating n

orientation analysis frameworks.

In the first article, Strategy changes analysis using life cycle fra

strategy typology, the concept of business life cycle (in the form of a

introduced combined with the viewpoint that the strategies of compa

over time and that these changes are in line with variations in life cy

The Miles and Snow (1978) strategy typology is combined with this

create a basis for the strategy analysis framework, which can be usestrategy changes over life cycle. This is a new framework that c

existing theoretical concepts of life cycle and typology, thereby se

interesting framework for scholars. The need to analyse strategy chan

cycle is becoming more important because of the changes in th

technological advancement; an increasing number of new disruptive

enter the high-technology realm. Such technologies include In

services and the ongoing convergence of business domains.

In the second article, Strategy orientation analysis in the mobil

business, the concept of strategy orientation is introduced from the p

the four-way strategy orientation and focus. The characteristics of

orientation, market orientation, product focus, and customer

summarised from various references, forming a basis for the four-w

framework. This analysis framework is also new, and combines the tw

dimensions in current strategy thinking: market-based and pr

strategies. Examples of market-based strategies are evident fr

perspectives of Porter (1980) (differentiation or cost leadership)

strategies make up the analysis frameworks product based s

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strategies make up the analysis framework s product-based s

market-based strategy section is built from customer-focused

strategies (market pull). The developed framework bri

orientations, enabling researchers to analyse companies or

with the use of one framework. It also contributes to the discu

product orientation by analysing and synthesising the p

adopted by many scholars.

In the third article, Analysis of strategy focus vs. marke

phone case business, the orientation analysis framework is the market share dimension. This is a new framework that ser

view of combining the business metrics of market share

analysis of orientations. This interesting framework contribu

on qualitative and quantitative frameworks and their synthesis

In the fourth article, Analysis of strategy by stra

orientation framework, the theoretical foundations of the Miles and Snow (1978) are combined with the strategy or

This framework serves as an avenue for scholars to

typological characteristics in relation to strategy orientation

current use of the strategy typology with a novel approach.

Overall, the entire research brings new knowledge in the

analysis frameworks, as well as interesting findings from

materials. The analysis frameworks built by enhancing th

(1978) typology extend the discussion and confirm the applic

referred typology to the special cases presented in the presen

in typology over life cycle is an interesting phenomenon a

companies move from being prospectors to defenders under

and then seek balance under slow growth by transitionin

strategy can be successful in one growth phase yet a failure i

conclusion was drawn by Moore (2000). In the strategy or

current study extends the ongoing academic discussion on

orientation. This research also creates summary of the orien

4 2 Managerial implications

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4.2 Managerial implications

The strategy analysis frameworks constitute an analysis toolbox beneficial to the business side in terms of strategy analysis. Th

analysis frameworks can be used individually and applied in group

three; the full set can also be adopted. A natural area for application w

strategy analysis phase in a companys strategy formulation process.

up on the success of strategy implementation can be evaluated

established characteristics in the periodic strategy review process. would be to first identify a companys strategy orientation (e

orientation) and then determine whether the company pursues a

strategy orientation (e.g. towards market orientation). After these step

up of the progress of strategy implementation can be performed an

against the analysis framework characteristics.

To strategically guide a company through its evolution, manage

understand the life cycle and s-curve concepts, as discussed in the

The S-curve is applicable in various conditions, and can direct m

priorities towards matters relevant to the s-curve position. The con

cycle with phases helps management consider and reflect on its relat

position, as well as understand its growth limitations and then

opportunities. These opportunities can be investments in new te

changes in the company business domain. Overall, the life cycle-ba

analysis serves as a tool for determining needs and preparing for tra

It drives this transformation in a controlled manner when analysis i

and results are available.

The case business and its life cycle development with changes

type function as benchmarks for transformation, and show the strate

potential to again realise growth. The pattern of change from a prodefender shows the linkage between life cycle position and adopte

The prospector strategy is especially applicable when new technolo

new markets are open, no pre-defined business players or business lo

business volume) The analyser strategy is a benchmark exam

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business volume). The analyser strategy is a benchmark exam

period strategy, in which the established position in the mar

the same time, new business opportunities are created through

technology areas or business domains. An example of such tr

from being a product-centric business to being a serv

transformation has occurred in various companies and ind

transformation period strategy critical to strategic manage

execution.

Furthermore, the strategy typology is a valuable analstrategy development purposes because it serves as an

evaluating company strategy using a set of criteria. One of the

of using this tool would be the prevention of transitioning

Identifying the characteristics of such a strategy or lack of st

strategy renewal process within a company.

In the second article, the four-way analysis frameworresponsible of strategy development to analyse their compa

demand-based or product-based domains, and then more ac

position in one of the four dimensions. Both the current positi

time in the companys strategic position can be analysed u

The same can be applied in analysing or estimating a co

position, which is important in ensuring competitive a

competitive markets.

The case business strategy orientation dynamics serv

example of strategy development over time. Such dyn

benchmark for strategy developers in different companies giv

change strategy drivers has been shown (by the case bu

essential to successful growth. Later in the life cycle, this

necessary building block for renewal and search for new grow

The discussion of customer-centricity within a comp

evaluated by using the analysis framework. Companies fou

the section of technology-product orientation cannot argu

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strategy analysis frameworks and the empirical findings on

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gy y p g

were subjected to a critical scientific double blind review

journal articles to evaluate theoretical and empirical reliabil

comments and improvements requested were implemented be

In the second and third articles, the limitations of the res

the definitions of the analysis framework dimensions. In

customer focus and market orientation somewhat overla

strategies are new concepts in strategy research and only

conducted on fundamental definitions and directions. The econstrained by its nature because it provides an overview of

but many detailed or fine-scale notations cannot be discuss

The view in this research is broad but shallow compared, fo

interview approach in empirical material collections.

The fourth article is constrained by the definitions of the

dimensions. The empirical materials of both the cases busintheir nature also because they provide an overview of the e

prevent a detailed discussion of fine-scale notations.

Other limitations are due to fact the in the qualitative res

itself can be the most critical aspect for the reliability, as resea

biases can influence the results. However, because the analy

created in such a way that a clear criteria set is always availa

carry out a study as objectively as possible, thereby minimis

This attribute of the framework also enhances repeatabil

scrutiny of results. This way any researcher can repeat the stu

results.

As for external validity, the theoretical themes discuss

analysis frameworks developed are universal. This universa

the nature of the two case businesses, which function in mu

Nevertheless, external validity should be analysed further in f

4 4 Recommendations for further research

Areas for further research can also include a more comprehensiv

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transformation strategies (e.g. shifting from one technology area to

from a product business to a service business). Strategy focus ar

consumer focus, as a strategy driver are also interesting research

example, understanding consumers, such as those in segmented con

in the analyser strategy, can be used or further developed for strat