Strategic repositioning in the construction industry – An examination of main challenges

Abstract: This thesis aims stress out the key challenge organisation might face, if the changes in the environment reveal the need for a strategic repositioning. In particular this thesis examines the perceived organizational challenges that might occur, if an organizations tries to reposition itself by spinning out a new venture that aims to create a new combi-nation of products and markets. To illustrate how firms may tackle the occurring chal-lenges, a model is proposed that points out what key challenges companies need to con-sider when pursuing a process of strategic repositioning. On the one hand, this paper classifies strategic repositioning as a strategic initiative dedicated to the domain of stra-tegic renewal, which can be perceived as one of the main streams of strategic entrepre-neurship. On the other hand, it will point out several challenges that are directly interre-lated with a specific form of corporate venturing; the spin out. In effort to combine the-se two elemental streams of corporate entrepreneurship, the here used concept of strate-gic repositioning is referring to a range of theoretical concepts that reflect a broad per-spective on the area of entrepreneurship theory. The theoretical framework majorly con-sists of two superordinated streams: Firstly, theory dedicated to strategic repositioning (Reichel, 2005; Ryan, Moroney, Geoghegan, & Cunningham, 2007; Turner, 2003), which also includes a classification and distinction of the framing domain of strategic renewal (Agarwal & Helfat, 2009; Kuratko, Covin, & Morris, 2011). Secondly, theory discussing the main challenges of organizational change with a focus on strategic re-newal and strategic repositioning (Agarwal & Helfat, 2009; Ryan et al., 2007). Thereby, the conceptualization of the business model (Cavalcante, Kesting, & Ulhøi, 2011; McGrath, 2010; Morris, Schindehutte, & Allen, 2005; Osterwalder & Pigneur, 2010) will be highlighted in effort to outline it as a particularly relevant key challenge with regard to the spin out as carrier of the strategic repositioning process. Subject of the conducted case study is Inwido, a multi-national construction company based in Swe-den that is settled in the window and door industry. To gather the required information a range of qualitative data was collected embracing semi-structured interviews as well as the employment of secondary data sources. In a further step the gathered data is ana-lyzed and compared with relevant literature to reveal implications to the proposed theo-retical model. According to the findings final recommendations are stated to deduct further implications for other companies in the construction industry or unrelated indus-tries that face similar challenges.