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  • 1.
    Sundberg, Christoffer
    et al.
    Jönköping University, Jönköping International Business School.
    Sundberg, Gustaf
    Jönköping University, Jönköping International Business School.
    Lilja, Miikka
    Jönköping University, Jönköping International Business School.
    Growth Strategies in Declining Industries2015Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
    Abstract [en]

    The phenomenon of declining industries has been sparsely researched and few scholars have investigated whether firms pursue, or should pursue, growth in industries that are in decline. This study aims to find out if and how firms pursue growth when they perceive the industries in which they operate as experiencing a decline. The study also aims to examine the key factors that influence firm strategy in declining industries.

    We interviewed managers in firms operating in two declining industries, the Swedish retail fuel industry and the Finnish printing industry.

     

    Our finding is that the studied firms operating in these two industries are aware of the declining state of their industries. However, all of them believe that their respective industries will transform instead of perish. Consequently, these firms pursue growth through various strategies to better position themselves within the changing conditions and declining state of their respective industries. Both internal and external factors influence firm strategy, and the factors were both industry and firm-specific. The firms studied tended to employ strategies based on their perception of their industries. In addition, the strategies were developed to both suit the current and the future industry environment. We label these strategies transformational strategies. We build on this new strategic option and construct a guiding framework that aims to facilitate firms’ strategic decision-making in declining industries.

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