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An Assessment of Market Growth Strategies in a multinational company: The case of Komatsu Forest AB
Umeå University, Faculty of Social Sciences, Umeå School of Business.
Umeå University, Faculty of Social Sciences, Umeå School of Business.
2007 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Setting strategies for an organisation is full of complexities (which strategy or strategic process to use) and these complexities arise from the ambiguous and non-routine processes. This is so because, strategy development is about the future and this future is unknown, as the paths companies follow are dynamic. Due to these complexities, managers tend to embark on knowledge gain through competencies in the management of companies. In order for future managers who have not had organisational experience to understand how strategic management is in real company situation, a case study on the types of market growth strategies and strategy development process in a multinational company is done in this thesis. How these strategies implemented affects market share is also an elaborate part of this study

This study was done as a case study in Komatsu Forest AB; a multinational company that manufactures forestry machines. In this light, the study sets to identify the market growth strategies implemented by this company, its strategy development process and how the strategies have affected its market share.

As basis for an empirical research process, a theoretical framework was compiled from existing literatures on market growth strategies and strategy development process, where the strategies were considered both at the business level and corporate level. A deduction research approach was appropriate for the study whereby qualitative empirical data was collected through semi-structured face-to-face interviews. The interviews were conducted with two employees of the company (Market analyst and the spokesman for the company) who were considered to be knowledgeable in the subject area. This allowed a thorough understanding of particular issues pertaining to the company.

The analysis of the empirical findings showed that this company implements acquisition, partnership/networks and diversification at the corporate level and high pricing, differentiation at the business level as its market growth strategies. This company develops these strategies through a planned process; meaning that strategies are intended and these strategies have a positive impact on the company as its overall market situation has increased. This study offer some contributions for this company on how some strategic adjustments can be made in order to improve the current market situation and some recommendations for its management in better decision making.

Place, publisher, year, edition, pages
Umeå: Handelshögskolan vid Umeå universitet , 2007. , 54 p.
Keyword [en]
Market growth strategies, multinational company
National Category
Business Administration
URN: urn:nbn:se:umu:diva-1248OAI: diva2:140548
Available from: 2007-06-28 Created: 2007-06-28Bibliographically approved

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