Structure and sources of competitive advantages in the yellow spreads industry in Finland
Saukkonen, Joonas (2020-04)
Saukkonen, Joonas
04 / 2020
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2020042119572
https://urn.fi/URN:NBN:fi-fe2020042119572
Tiivistelmä
According to Euromonitor International (2017) the yellow spreads industry in Finland is relatively mature and the companies operating in the industry tend to struggle to make profits. At the moment there cannot be found theoretical and university level studies focusing on this topic in Finland. Thus, the aim of this study is to examine the structure and the sources of competitive advantages in the yellow spreads industry in Finland. In this study competitive advantage is defined as company’s capacity to develop the quality of its products, reduce costs or to gain more market share or profits.
The strategic management tools and models used in this study are five forces model, PEST analysis, strategic groups model, resource-based view, BCG matrix and SWOT analysis. The selection of these strategic management tools and models was based on the opportunity to examine the influence of both exogenous and endogenous factors on the structure of the yellow spreads industry in Finland. These strategic management tools and models also enable to find out the sources of the competitive advantages and ways to maintain it in the yellow spreads industry in Finland.
In order to find out what are the sources of the competitive advantages and how is the industry structure in terms of the strengths, weaknesses, opportunities and threats in the yellow spreads industry in Finland, two open-ended semi-structured interviews were held. The interview questions were derived from the strategic management tools and models used in this study and the two interviewees worked as Senior and Junior Key Account Managers in the yellow spreads industry in Finland.
The results of the study showed that the structure of the yellow spreads industry follows the conditions of the perfect competition where there are many companies selling similar products and competing for the same customers. No individual company dominates the yellows spreads industry in Finland. Overall, the yellow spreads industry conditions in Finland are stable and competitive advantage can be gained and maintained through selling volume with low costs, developing new products and strong brands and by taking the advantage of the current trends such as health and sustainability.
The strategic management tools and models used in this study are five forces model, PEST analysis, strategic groups model, resource-based view, BCG matrix and SWOT analysis. The selection of these strategic management tools and models was based on the opportunity to examine the influence of both exogenous and endogenous factors on the structure of the yellow spreads industry in Finland. These strategic management tools and models also enable to find out the sources of the competitive advantages and ways to maintain it in the yellow spreads industry in Finland.
In order to find out what are the sources of the competitive advantages and how is the industry structure in terms of the strengths, weaknesses, opportunities and threats in the yellow spreads industry in Finland, two open-ended semi-structured interviews were held. The interview questions were derived from the strategic management tools and models used in this study and the two interviewees worked as Senior and Junior Key Account Managers in the yellow spreads industry in Finland.
The results of the study showed that the structure of the yellow spreads industry follows the conditions of the perfect competition where there are many companies selling similar products and competing for the same customers. No individual company dominates the yellows spreads industry in Finland. Overall, the yellow spreads industry conditions in Finland are stable and competitive advantage can be gained and maintained through selling volume with low costs, developing new products and strong brands and by taking the advantage of the current trends such as health and sustainability.