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KEMI-TORNIO UNIVERSITY OF APPLIED
SCIENCES
Exploitation of Capabilities and Opportunities When ExploringStrategic Alternatives in R&D:
Case Company
Antti Jarva
Master´s Thesis of the Degree Programme in International Business ManagementMaster of Business Administration
TORNIO 2011
ABSTRACT
Jarva, Antti. 2011. Exploitation of Capabilities and Opportunities When Exploring Strategic Alternatives in R&D: Case Company. Master's Thesis. Kemi-Tornio University of Applied Sciences. Business and Culture. Pages 61. The main objective of the Thesis is to analyze the Case Company and to construct strategic suggestions to stay competitive. The focus is on exploitation of capabilities and opportunities. Additionally, the Thesis investigates whether the efficiency of utilized resources could be improved further. The strategic suggestions and opportunities for improvement are meant to be beneficial also for the parent company. The Thesis is based on a qualitative research approach. The successful research and development history with major technological shifts in the dynamic industry lay the foundation for this exploratory case study. The theoretical framework was obtained by relevant articles, books and studies. The empirical information was gained through interviews, observations and experiences of my own. The analytical framework comprises external and internal strategic evaluations. Analysis results include organizational strengths and weaknesses, industry specific and social opportunities, and threats. Strategic suggestions are formulated by exploring the most feasible strategic alternatives created. Opportunities for improvements are built for main weaknesses. The results of this study show that the Case Company needs a strategy. It would motivate employees and increase entrepreneurship skills, in addition to specifying the long-term direction. The deployed bottom-up operative approach exploits knowledge of experts and develops organizational capabilities for the purposes of strategic management. According to the findings, the Case Company would be able to gain competitive advantages, for example, via service differentiation and customer collaboration. Furthermore, the management team would need relational capabilities and the role of human resource management could be emphasized. Chapters are not published in their full length in the Library version, since the information in them is classified as confidential. Keywords: strategic management, organizational capabilityABBREVIATIONS
2G 2nd Generation Mobile System (usually GSM)
3G 3rd Generation Mobile System (usually UMTS/WCDMA)
3GPP 3rd Generation Partnership Project
ATM Asynchronous Transfer Mode
BI Business Intelligence
CI Competitive Intelligence
EU European Union
GSM Global System for Mobile Communications, Groupe Spécial MobileHR Human Resource
IMS IP Multimedia Subsystem
IP Internet Protocol
ISDN Integrated Services Digital Network
MBA Master of Business Administration
PLMN Public Land Mobile Network
PSTN Public Switched Telephone Network
QoS Quality of Service
R&D Research and Development
ROI Return on Investment
SWOT Strengths, Weaknesses, Opportunities and ThreatsTDM Time Division Multiplexing
UMTS Universal Mobile Telecommunications System
VoIP Voice over IP
WCDMA Wideband Code Division Multiple Access
CONTENTS
ABSTRACT ...................................................................................................................... 2
ABBREVIATIONS .......................................................................................................... 3
1 INTRODUCTION ..................................................................................................... 6
1.1 Motivation and Background ...................................................................................... 6
1.2 Research Objectives, Research Questions and Main Findings .................................. 6
1.3 Research Methodology and Limitations of Study ..................................................... 8
1.4 Structure of Thesis ..................................................................................................... 9
2 LITERATURE REVIEW ........................................................................................ 10
2.1 Strategic Management ............................................................................................. 10
2.1.1 Generic Strategies ...................................................................................... 12
2.1.2 Competitor Analysis .................................................................................. 13
2.1.3 Intangible Resources .................................................................................. 14
2.2 Knowledge and Organizational Capabilities............................................................ 15
2.3 Capability Development Model and Networking Capabilities ................................ 17
2.4 Self-organizing Teams ............................................................................................. 19
3 ANALYTICAL FRAMEWORK ............................................................................. 21
3.1 External Strategic Evaluation .................................................................................. 21
3.2 Internal Strategic Evaluation .................................................................................... 22
3.3 Strategic Suggestions ............................................................................................... 22
3.4 Opportunities for Improvement ............................................................................... 22
4 RESEARCH METHODOLOGY ............................................................................ 23
4.1 Qualitative Research ................................................................................................ 23
4.2 Case Study Research ................................................................................................ 24
4.3 Data Collection and Analysis Methods .................................................................... 25
5 CASE EVIDENCE .................................................................................................. 27
5.1 External Strategic Evaluation .................................................................................. 27
5.1.1 Competitive Environment, Technology View ........................................... 27
5.1.2 Competitive Strategy Formulation............................................................. 28
5.1.3 Three Generic Strategies ............................................................................ 32
5.1.4 Summary of External Strategic Evaluation ............................................... 33
5.2 Internal Strategic Evaluation .................................................................................... 35
5.2.1 Case and Parent Company, Organization and Strategy View ................... 35
5.2.2 Strategic Management in Case Company .................................................. 35
5.2.3 Operative Management in Case Company ................................................ 35
5.2.4 Summary of Internal Strategic Evaluation ................................................. 36
5.3 Exploration of Strategic Alternatives for Case Company ........................................ 37
5.3.1 SWOT and Confrontation Matrix .............................................................. 38
5.3.2 Strategic Suggestions ................................................................................. 41
5.4 Opportunities for Improvement ............................................................................... 46
6 CONCLUSIONS ..................................................................................................... 49
6.1 Motivation and Background .................................................................................... 49
6.2 Summary of Study ................................................................................................... 50
6.3 Suggestions for Future Research ............................................................................. 53
REFERENCES ................................................................................................................ 55
FIGURES ........................................................................................................................ 60
TABLES .......................................................................................................................... 61
6