Growth Strategies of Multinational Companies : Jewelry Retail Industry
Haapalainen, Valérie; Skog, Nan (2011)
Haapalainen, Valérie
Skog, Nan
Jyväskylän ammattikorkeakoulu
2011
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201103163240
https://urn.fi/URN:NBN:fi:amk-201103163240
Tiivistelmä
This thesis investigates business and growth strategies of 4 multinational companies within the jewelry retail industry. The main objective is to identify whether a company’s performance is determined by its growth strategy or not.
The 4 formulated tasks for the research are (1) to understand what kind of business models and strategies global jewelry retailers pursue, (2) what growth strategies global jewelry retailers pursue and (3) if there is a link between a company’s growth strategy and its profitability. Finally (4) the findings are reviewed on their transferability to other industries. Each task represents a research question to be answered.
To fulfill the tasks and reach the objective, the case companies’ strategic business models and growth strategies are investigated in the first part of the thesis. For the investigation and analysis Porter’s competitive analysis and generic strategies as well as the concepts of diversification and internationalization are applied and the first findings generated.
In the second part the generated findings are related to each company’s revenue growth, operating profit margin and return on assets for the chosen time period 2005‐2009 to assess each company’s profitability and derive the findings to achieve the main objective.
The findings regarding the business models and growth strategies pursued are that all of them are based on Porter’s generic strategies as well as internationalization and diversification but there is no specific preference given to any of the strategic elements. The main finding of the thesis is that growth strategies do to not have a significant positive or negative impact on the overall profitability. In the context of strategic management they can support in a positive or negative way the strategic decisions, but to assess a company’s profitability a broader range of indicators has to be considered, as for example the business model and strategy as well as the market. This perception and approach is found to be valid for other industries and businesses.
The 4 formulated tasks for the research are (1) to understand what kind of business models and strategies global jewelry retailers pursue, (2) what growth strategies global jewelry retailers pursue and (3) if there is a link between a company’s growth strategy and its profitability. Finally (4) the findings are reviewed on their transferability to other industries. Each task represents a research question to be answered.
To fulfill the tasks and reach the objective, the case companies’ strategic business models and growth strategies are investigated in the first part of the thesis. For the investigation and analysis Porter’s competitive analysis and generic strategies as well as the concepts of diversification and internationalization are applied and the first findings generated.
In the second part the generated findings are related to each company’s revenue growth, operating profit margin and return on assets for the chosen time period 2005‐2009 to assess each company’s profitability and derive the findings to achieve the main objective.
The findings regarding the business models and growth strategies pursued are that all of them are based on Porter’s generic strategies as well as internationalization and diversification but there is no specific preference given to any of the strategic elements. The main finding of the thesis is that growth strategies do to not have a significant positive or negative impact on the overall profitability. In the context of strategic management they can support in a positive or negative way the strategic decisions, but to assess a company’s profitability a broader range of indicators has to be considered, as for example the business model and strategy as well as the market. This perception and approach is found to be valid for other industries and businesses.