STRATEGY
STRATEGY
ØYSTEIN D. FJELDSTAD
RANDI LUNNAN (EDITORS)
STRATEGY
Copyright © 2025 by
Vigmostad & Bjørke AS
All rights reserved
First edition 2025 / First printing 2025
ISBN: 978–82–450–5092–9
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Preface
Strategy is important for all firms, as a firm’s strategy sets the overall goals and gives the direction the company must follow to reach these goals. The Greek philosopher Seneca said that without knowing which port we want to sail to, no wind is beneficial. Lacking a clear direction for actions and investments leads to suboptimal solutions and a competitive disadvantage compared to those firms that have taken consistent choices over time. The fourth edition of this book, the first in English, includes a new chapter on technology. Understanding technology, and in particular digital technology, is increasingly important for strategy work.
The purpose of this book is to offer a comprehensive overview of theories, analyses, processes, and tools that in combination constitute a foundation for the systematic development and implementation of strategy. The book is based on research but focuses on application. The essence of Strategy is the strategic choices firms make, and we build on insights from many researchers from many continents, over several decades. Some readers may already be familiar with elements of the book. However, the book is unique as it draws on research done at the Department of Strategy and Entrepreneurship at BI Norwegian Business School.
The book distinguishes between different business models, making the content relevant not only for manufacturing firms, but also for firms that create value by delivering different kinds of services, for example using deep knowledge to solve problems, or offer networking services, including platform services. A strategy may be developed through planned sequences, where strategic analysis lead to choices and implementation. Strategies may also evolve through processes of learning and experimentation over time.
The content of the book can be approached in different ways. Each chapter consists of three parts: theory, examples, and strategic tools. Readers may choose which part to start with. Some readers prefer to understand theory before reviewing tools and examples, while others may like to start with examples. Each chapter includes a summary, a thought map, and questions.
This strategy book differs from others because it offers a consistent and systematic insight into strategic decisions. In addition to decisions about products and markets, the book also shows how strategic decisions need to include choices related to activities and resources as well as organization. A strategy consists of three interlinked choices:
• Choice of products and services, the markets in which these are offered and the positioning
• Choice of resources and activities that are needed to offer products and services
• Choice of an organization that supports and balances operations and innovation
These three choices are interdependent. The choice of resources determines the types, quality, and number of products or services that the firm can offer in a market. Choice of organization determines the ability to innovate in order to adapt to different market conditions, develop new products, and expand the resource base. In the book, we refer to these three choices as the adaptive cycle, and all chapters are organized around the three choices and the link between them.
The book consists of three parts:
• Part 1: Strategic analysis (Chapters 2–11)
° The adaptive cycle is connected to four different business models and the strategic choices in these models, focusing on the first two decisions in the adaptive cycle.
• Part 2: Strategy in different contexts (Chapters 12–15)
° In these chapters the adaptive cycle is related to different organizational levels, markets, and contexts. This part also focuses on the first two strategic decisions in the adaptive cycle and shows how these are affected by different levels within the firm as well as showing applications in different contexts.
• Part 3: The strategy process and organizing (Chapters 16–17)
° These chapters show how all choices in the adaptive cycle are linked.
Chapter 1 offers an overview of the book and gives the essence of each of the chapters. The editors/authors of this book are both professors at BI Norwegian Business School. They have researched and taught strategy for several years. The book is the result of numerous conversations with students, colleagues, and firms. We would like to extend our deepest gratitude to everyone who has contributed and provided comments.
Most of the examples are from Norwegian firms. We would like to offer special thanks to Kari Westersund and Per Håvard Skiaker Mælen from Orkla; Halvor Lande Sannes and Øyvind Trangerud from DnB; Hilde Bettum, Karl-Henrik Burud, Frank Are Berggren, and Siri Moldestad from Jotun; Ernst Meyer from DnV; Fride Solbakken from Maritimt Forum Stavanger; Ellen Altenborg, Thomas Andersen, and Johan Rostoft from Telenor; Sverre Tyrhaug and Trine Melsether from Thommessen; Tor Jakob Ramsøy and Marcus Furuholmen from Arundo; Ola Eggen Thorseth from Accenture; David Hopkins, Bjørn Brubakk, Alex Skaugen, and Melanie Moore from Wilhelmsen ASA; Lars Urheim, Ellen Mikkelsen, and Rune Gaasø from Ogoori; and Helene L. Colman, Espen Andersen, Torger Reve, Sverre Tomassen, Ellen Altenborg, and Erik Aadland from BI Norwegian Business School, all of whom have generously shared their time and insight to offer examples for this book.
We have received many useful comments and insights into how the book is received and used by students, and would especially like to thank our colleagues Erik Wilberg and Anna Sward for sharing these experiences so generously.
Linda Paulsen, Kamilla Tellefsen, Maria Fougner, and Cristina Nez Nunes have been excellent assistants in developing cases and teaching materials. We would also like to thank our patient and supportive editors Hilde B. Kristoffersen and Andreas Nybø. They have inspired us and helped us deal with issues that created problems during the process of finishing this book.
This book is the result of a collaboration between several authors from the Department of Strategy and Entrepreneurship at BI. Øystein D. Fjeldstad and Randi Lunnan were the editors of the book and have written many of the chapters. Chapter/ section contributors are Espen Andersen, Sverre Tomassen, Gabriel R.G. Benito, Torger Reve, Ellen Altenborg, and Erik Aadland.
Finally, we would like to extend our deepest gratitude to Professor Charles C. Snow, Penn State University. His highly recognized and well tested models to understand the interplay between strategy, structure, and process have greatly informed our approach to strategy. He has been an important inspiration for this work.
Happy reading!
Oslo, August 2025
Øystein D. Fjeldstad and Randi Lunnan
STRATEGY provides a systematic and comprehensive understanding of strategic decisions, strategy processes, and strategic organizing.
The book offers insight into theories, analyses, processes, and tools that together form the foundation for developing and implementing strategy holistically.
STRATEGY is research based but practice oriented, focusing on how to actually do strategic work. It builds on knowledge about strategy and strategy work in different types of organizations, developed over many years by researchers around the world.
By distinguishing between different business models, STRATEGY is relevant not only for industrial firms but also for service firms and organizations more generally.
The book is well suited for students of strategic management. It is also highly relevant for managers and employees in both the private and the public sectors.
ISBN 978-82-450-5092-9