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Strategiska alternativ för inträde i gruvbranschens värdenätverk

Foss, Willhelm and Werkell, Jacob (2013) MIO920
Production Management
Abstract
Purpose
The purpose of this study is to describe and analyze the mining industry's
driving forces, attractiveness and value network and propose strategic
options for entry.
Method
This study’s method consists of a combination of a descriptive, exploratory
and explanatory approach. The descriptive and exploratory approach is
used at first to give a comprehensive picture of how the mining industry
works and to provide a good base of knowledge to build upon. With
appropriate frameworks, the industry's attractiveness and driving forces are
analyzed as well as a keen understanding of its value network is obtained.
The explanatory part of the study is performed to demonstrate how an entry
into the industry value network can be done... (More)
Purpose
The purpose of this study is to describe and analyze the mining industry's
driving forces, attractiveness and value network and propose strategic
options for entry.
Method
This study’s method consists of a combination of a descriptive, exploratory
and explanatory approach. The descriptive and exploratory approach is
used at first to give a comprehensive picture of how the mining industry
works and to provide a good base of knowledge to build upon. With
appropriate frameworks, the industry's attractiveness and driving forces are
analyzed as well as a keen understanding of its value network is obtained.
The explanatory part of the study is performed to demonstrate how an entry
into the industry value network can be done and how this is done in the
most appropriate manner.
The study is a combination of a mapping and a case study. Initially, a
mapping was carried out in order to build a foundation of knowledge and a
broad understanding of how the industry works and who the actors are. In
III
the areas where deeper knowledge was needed to gain understanding,
case studies was applied to completely cover the study’s problems and to
fulfill the purpose.
The data collection was carried out by two different methods, literary
studies and interviews with various mining company executives.
Theoretical Framework
In order to answer the study's purpose, various theories have been
combined. The study’s purpose can be divided into two more specific
purposes, analyzing driving forces and attractiveness and, propose and
analyze strategic options for entry.
When analyzing the mining industry’s driving forces, the frameworks
PESTEL and SWOT were used and when analyzing the industry
attractiveness Porter's five forces were used.
Porter’s Value Chain Model is used to describe where in the value network
a potential entry could be done. The Strategy Clock is used to link the
empirical data from the PESTEL, SWOT, Porter's Five Forces and Porter's
Value Chain Model to describe the fact that, depending on where in the
value chain, an entry is made, and how the industry’s driving forces and
attractiveness acts and appears, various strategies must be used. Theory
about acquisitions and partnerships are used for proposals and analysis of
strategic options for entry.
The study’s findings regarding entry are summarized in a matrix developed
by the authors, were the possibility of succeeding entering the industry is a
function of requirements on internal knowledge about the industry.
Conclusions
The study's conclusion states that the mining industry is very attractive but
since there are several significant driving forces, the industry can be
volatile. The main driving forces are the global economic development,
leading to a continuing demand for iron ore, as well as the region's political
stability and investments in the mining industry.
The study states that all the forces in Porter's Five Forces analysis is very
strong and in balance, since that, it is very difficult and often very
unprofitable for new players to enter the market. There are also many
players in the market and the competition is fierce. This results that the
study recommends two options to become a part of the mining industry
value chain, through acquisition or partnership. An acquisition of a
company with established relationships and historically proven experience
is the option that the study considers most appropriate. (Less)
Please use this url to cite or link to this publication:
author
Foss, Willhelm and Werkell, Jacob
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Mining industry, value-network, value-chain, mapping, driving forces, industry attractiveness, mergers and acquisitions, partnership
other publication id
13/5450
language
Swedish
id
3917285
date added to LUP
2013-07-03 14:18:17
date last changed
2013-07-03 14:18:17
@misc{3917285,
  abstract     = {Purpose
The purpose of this study is to describe and analyze the mining industry's
driving forces, attractiveness and value network and propose strategic
options for entry.
Method
This study’s method consists of a combination of a descriptive, exploratory
and explanatory approach. The descriptive and exploratory approach is
used at first to give a comprehensive picture of how the mining industry
works and to provide a good base of knowledge to build upon. With
appropriate frameworks, the industry's attractiveness and driving forces are
analyzed as well as a keen understanding of its value network is obtained.
The explanatory part of the study is performed to demonstrate how an entry
into the industry value network can be done and how this is done in the
most appropriate manner.
The study is a combination of a mapping and a case study. Initially, a
mapping was carried out in order to build a foundation of knowledge and a
broad understanding of how the industry works and who the actors are. In
III
the areas where deeper knowledge was needed to gain understanding,
case studies was applied to completely cover the study’s problems and to
fulfill the purpose.
The data collection was carried out by two different methods, literary
studies and interviews with various mining company executives.
Theoretical Framework
In order to answer the study's purpose, various theories have been
combined. The study’s purpose can be divided into two more specific
purposes, analyzing driving forces and attractiveness and, propose and
analyze strategic options for entry.
When analyzing the mining industry’s driving forces, the frameworks
PESTEL and SWOT were used and when analyzing the industry
attractiveness Porter's five forces were used.
Porter’s Value Chain Model is used to describe where in the value network
a potential entry could be done. The Strategy Clock is used to link the
empirical data from the PESTEL, SWOT, Porter's Five Forces and Porter's
Value Chain Model to describe the fact that, depending on where in the
value chain, an entry is made, and how the industry’s driving forces and
attractiveness acts and appears, various strategies must be used. Theory
about acquisitions and partnerships are used for proposals and analysis of
strategic options for entry.
The study’s findings regarding entry are summarized in a matrix developed
by the authors, were the possibility of succeeding entering the industry is a
function of requirements on internal knowledge about the industry.
Conclusions
The study's conclusion states that the mining industry is very attractive but
since there are several significant driving forces, the industry can be
volatile. The main driving forces are the global economic development,
leading to a continuing demand for iron ore, as well as the region's political
stability and investments in the mining industry.
The study states that all the forces in Porter's Five Forces analysis is very
strong and in balance, since that, it is very difficult and often very
unprofitable for new players to enter the market. There are also many
players in the market and the competition is fierce. This results that the
study recommends two options to become a part of the mining industry
value chain, through acquisition or partnership. An acquisition of a
company with established relationships and historically proven experience
is the option that the study considers most appropriate.},
  author       = {Foss, Willhelm and Werkell, Jacob},
  keyword      = {Mining industry,value-network,value-chain,mapping,driving forces,industry attractiveness,mergers and acquisitions,partnership},
  language     = {swe},
  note         = {Student Paper},
  title        = {Strategiska alternativ för inträde i gruvbranschens värdenätverk},
  year         = {2013},
}