Strategic positioning You are partner of a well-known consultancy firm specialising in strategy advice. One day, you have an appointment with the CEO of a cell-phone company who is worried about the strategic choices his company has recently made. The Scandinavian company used Porter’s theory and followed a low cost strategy for some time. Instead of finding a market niche where competition could be avoided, the firm finds itself attacked by competitors pursuing both low cost and high innovating strategies. They take away market share from the company in a relatively short time.

1. Characterise the market in which the cell-phone company operates.

2. Comment on the strategic choice this company has made in the past:

a. Are the premises under which the decision was made still valid?

b. Should the company follow one of Porter’s strategy choices?

3. What is a reasonable corporate strategy for high technology companies like the cellphone company?