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Expanding the core business: Understanding how to grow in the non-core business
KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.).
2020 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesisAlternative title
Utöka kärnverksamheten : Förstå hur man växer inom icke-kärnverksamheten (Swedish)
Abstract [en]

Throughout history, large companies have been adapting to the new times. For this, they have had to be able to evolve and change the direction of their offer. In most cases, the offer they have now has nothing to do with what they offered. In other terms, they had to expand their core business. That means changing the main source of incomes. This can be done by moving to another market, creating new products, changing from a product to a service company etc. On the contrary, many companies that led the market have disappeared due to their lack of future vision. After using all its resources in their current core product, they forgot to invest in the future. Once that product became obsolete, the company failed. Looking to the future and deciding which direction to take is not easy. There is no standard successful formula for knowing which direction to take, but there are some common factors that can help reduce the risk. The results from the study show lack of focus and strategy as the main challenges for companies to expand the core. The conclusion is that there is not only one way to expand the core, and each company should adapt their strategies according to the status of the company. In the case of the case company, the strategy is aligned with their status, but the way it is applied should be improved to increase the speed and success rate. Three main recommendations are given to improve the actual expanding-the-core process: Isolate the non-core to increase the focus, better use of their brand position and the competitive advantages it can bring, and to improve the overall knowledge of the company in the non-core products.

Abstract [sv]

Genom historien har stora företag anpassat sig till nya tider genom att ändra innehållet i deras erbjudande. I de flesta fall har det erbjudande de nu har ingenting att göra med vad de erbjöd initialt. Med andra ord var de tvungna att utvidga sin kärnverksamhet. Det innebär att bytt huvudinkomstkälla. Detta kan t ex göras genom att hitta en annan marknad, skapa nya produkter, och att gå från ett produkt- till ett serviceföretag. Många företag som tidigare ledde marknaden har försvunnit på grund av sin brist på framtidsvision. Efter att ha använt alla dess resurser i sin nuvarande kärnprodukt, glömde de att investera i framtiden. När produkten blev föråldrad misslyckades företaget. Det är inte enkelt att ta hänsyn till framtiden och bestämma vilken riktning erbjudandet ska ta. Det finns heller ingen standard formel för att veta vilken riktning man ska ta för att bli framgångsrik, men det finns några faktorer som kan bidra till att minska risken. Resultaten från denna studie visar att brist på fokus och strategi är de största utmaningarna för företag att utöka kärnan. Slutsatsen är att det inte bara finns ett sätt att utöka kärnan, och varje företag bör anpassa sina strategier efter företagets situation. Fyra huvudrekommendationer ges för att förbättra den faktiska utvidgningsprocessen

Place, publisher, year, edition, pages
2020. , p. 45
Series
TRITA-ITM-EX ; 2020:416
National Category
Mechanical Engineering
Identifiers
URN: urn:nbn:se:kth:diva-277038OAI: oai:DiVA.org:kth-277038DiVA, id: diva2:1445786
External cooperation
Atlas Copco
Subject / course
Mechanical Engineering
Educational program
Degree of Master
Presentation
2020-06-22, 00:00
Supervisors
Examiners
Available from: 2020-06-23 Created: 2020-06-23 Last updated: 2022-06-26Bibliographically approved

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