GLOBALIZATION & THE NORDIC SUCCESS MODEL: PART I

ARTO LAHTI GLOBALIZATION & THE NORDIC SUCCESS MODEL: PART I DOWNLOAD FREE TEXTBOOKS AT BOOKBOON.COM NO REGISTRATION NEEDED Arto Lahti Globalization & the Nordic Succes Model – Part I Download free ebooks at bookboon.com 2 Globalization & the Nordic Succes Model – Part I © 2010 Arto Lahti & Ventus Publishing ApS ISBN 978-87-7681-549-3 Download free ebooks at bookboon.com 3 Globalization & the Nordic Succes Model – Part I Contents Contents Preface 5 1. Schumpeter’s economics and entrepreneurship 6 1.1 Timeless writers… 6 1.2 Schumpeter’s entrepreneur - interpretations 10 1.3 The Nordic perspective 18 2. Modern microeconomics 23 2.1 Industrial Organization Economics (IO) 28 3. Strategic management doctrine 34 3.1 Resource-based view 34 3.2 Business strategy, the core content in SMEs 39 4. Lahti’s resource-based approach to business strategy and microeconomics 45 4.1 Framework 45 4.2 Strategic group analysis 52 4.3 Bechmarking methods for SMEs 61 4.3.1 Some principles 61 4.3.2 Lahti’s benchmarking method for SMEs 65 4.3.3 Strategic marketing analysis as an example 68 Endnotes 74 what‘s missing in this equation? You could be one of our future talents maeRsK inteRnationaL teChnoLogY & sCienCe PRogRamme Are you about to graduate as an engineer or geoscientist? Or have you already graduated? If so, there may be an exciting future for you with A.P. Moller - Maersk. www.maersk.com/mitas Download free ebooks at bookboon.com 4 Globalization & the Nordic Succes Model – Part I Preface Preface This book analyses the global economy from the viewpoint of innovative firms. The main contribution relates to the argument that the best way to solve the current and future challenges facing the global economy is through a better understanding of Schumpeterian entrepreneurship in its modern forms. Multinational companies sell global commodities and mass-customized products, often by utilizing general principles of applied microeconomics such as Porter’s matrix of generic strategies. Innovative (growth) firms are viewing their global markets from a bottom-up perspective. The resource-based (RBV) view is an important element of the bottom-up perspective and has become well suited to innovative firms when the industrial organization (IO) school is like tailored for big multinationals. The RBV and the IO dates back to the history of strategic management doctrine by Alfred Chandler, intended to deconstruct the black box of the economist’s production function into some more elemental components and interactions In the Nordic countries a rapid deregulation of the ICT industry happed in the late 1980s. Being the first mover in digital mobile phones and shifting its focus to the opportunity share (Hamel & Prahalad, 1994, pp. 34-35), Nokia, the flagship of the Nordic firms, made bold leaps in the 1990s from a mass-producer of commodities (e.g. paper) to the absolute elite group of global high-tech firms. Nokia’s growth story is one of the most spectacular (Schumpeterian) cases over time. In terms of orthodox IO, Nokia jumped over market barriers in the way that should not be possible and that might have led to a devastating price competition in the oligopolistic market (Scherer and Ross 1990). By adapting Romer’s increasing return model, Nokia achieved an optimal market share on the global mobile phones markets (Buzzell and Gale, 1987). Tom Peters (Peters, 1990) debated about fragmented markets, referring to flexible with a wider variety of products to narrower markets. This was the market strategy that Nokia succeeded to implement. This book is based the writer’s own history and writings about the Nordic success stories that are useful to read. Download free ebooks at bookboon.com 5 ... - tailieumienphi.vn