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Going back to the roots? A study of the Nordic forest industry

Deibrant, Andreas; Skarp, Fredrik and Smith, Jan Erik (2009)
Department of Business Administration
Abstract
The purpose of this thesis is to examine the potential business model transformation in the forest industry, and to find out how, and in which areas future profits will be made. With an abductive approach, the study was conducted by forming a comprehension of the business model transformation in the forest industry, based on the developed theoretical framework. The empirical findings were generated from interviews with three groups of professionals, and then supplemented with a segment analysis and various document studies. The study shows that the Nordic forest industry is in a value outflow stage, and that there is a need to rethink the existing strategies and business models. Traditional low-cost strategies based on commodity products... (More)
The purpose of this thesis is to examine the potential business model transformation in the forest industry, and to find out how, and in which areas future profits will be made. With an abductive approach, the study was conducted by forming a comprehension of the business model transformation in the forest industry, based on the developed theoretical framework. The empirical findings were generated from interviews with three groups of professionals, and then supplemented with a segment analysis and various document studies. The study shows that the Nordic forest industry is in a value outflow stage, and that there is a need to rethink the existing strategies and business models. Traditional low-cost strategies based on commodity products and high volumes will not be competitive for actors with Nordic forest holdings. Instead, future profitability will be found in more value added products with a higher level of service, i.e. offering complete solutions to customers. In order to make the transformation possible, and to find new areas of value, companies need to take a broader view on research. An example of this could be to create a spin-off company consisting of professionals in material, marketing, and consumer behaviour that is conducting research independently from the mother company. (Less)
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author
Deibrant, Andreas; Skarp, Fredrik and Smith, Jan Erik
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Forest industry, Value Migration, Disruptive Technologies, Industry transformation, Business model reinvention, Management of enterprises, Företagsledning, management
language
Swedish
id
1366662
date added to LUP
2009-01-16 00:00:00
date last changed
2012-04-02 17:15:13
@misc{1366662,
  abstract     = {The purpose of this thesis is to examine the potential business model transformation in the forest industry, and to find out how, and in which areas future profits will be made. With an abductive approach, the study was conducted by forming a comprehension of the business model transformation in the forest industry, based on the developed theoretical framework. The empirical findings were generated from interviews with three groups of professionals, and then supplemented with a segment analysis and various document studies. The study shows that the Nordic forest industry is in a value outflow stage, and that there is a need to rethink the existing strategies and business models. Traditional low-cost strategies based on commodity products and high volumes will not be competitive for actors with Nordic forest holdings. Instead, future profitability will be found in more value added products with a higher level of service, i.e. offering complete solutions to customers. In order to make the transformation possible, and to find new areas of value, companies need to take a broader view on research. An example of this could be to create a spin-off company consisting of professionals in material, marketing, and consumer behaviour that is conducting research independently from the mother company.},
  author       = {Deibrant, Andreas and Skarp, Fredrik and Smith, Jan Erik},
  keyword      = {Forest industry,Value Migration,Disruptive Technologies,Industry transformation,Business model reinvention,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Going back to the roots? A study of the Nordic forest industry},
  year         = {2009},
}