Strategic positioning: a study of the Nordic paper and pulp industry

Abstract

Abstract Few perspectives in research on strategy have had as great an impact as Porter's (1980, 1985) framework for strategic positioning. The concepts of cost leadership and differentiation have been used both by practitioners in strategic planning and by scholars as the starting point for empirical studies. This widespread use has probably contributed to the high level of interest in the possibilities and limitations of the perspective. In this paper, certain central aspects of strategic positioning are examined empirically. The study covers seven business units in two segments of the paper and pulp industry in the Nordic region over a 10‐year period from 1991 to 2000. Among the aspects discussed are the possibility of strategic change and the possibility of combining strategic position. Other aspects treated are the relationship of the intended strategic position, as declared in the annual reports, to the realized strategic position, as shown by the relative positions of the business units compared to their competitor. The findings indicate that strategic positions are stable over time and that none of the business units was able to combine the positions of cost leadership and differentiation for a longer period of time. The results also suggest substantial congruence between the intended strategy and the realized strategy, at the units studied. Copyright © 2003 John Wiley & Sons, Ltd.