Creative Marketing

Course Project

Kungsfönster

Submitted By:
Arvid Andersson
Halima El Joundi
Jingchen Zheng
Kaan Ulgen
Muhammed Tariq

T uto r s :
Helen Anderson
Olof Brunninge

The 30 th o f M a r c h 20 0 9

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 Table of Content

1- E X E CU TI V E SU M M A R Y ……………………………………..……………………… 4

2- OV E R V I E W ……………………………………………..……………..………………. 5

3- P U R P OSE OF TH I S R E SE A R CH …………………………………………..…….…. 5

4- COM P A N Y A N A L Y SI S …………...………………………………………………..…. 6

5- CU STOM E R A N A L Y SI S …………………………………………….……………….. 8

6- COM P E TI TOR A N A L Y SI S ……………………………………………….…………. 9

6.1 I N WI D O…………………….……………………………………………........….. 10
6.2 SV E N SK A F Ö N STE R ……………………………………………………........…. 11
6.3 H -F Ö N STE R ………………………………………………………………........... 13
6.4 WE STCOA ST WI N D OWS A B ………………………………………………….. 14
6.5 K V I L L SF OR S …………………………………………………………………….. 15

7- WH A T’ S TH E R OT? …………………………………………………………………. 17

8- A N OV E R V I E W OF TH E M A R K E T……………………………………………….. 18
8.1 SE G M E N TA TI ON ……………………………………………………………….. 19

9- SWOT A N A L Y SI S…………………………………………………………………….. 20

10 - TOWS A N A L Y SI S…………………………………………….……………………… 21
10 .1 SO STR A TE G I E S……………………………………………………………….. 23
10 .1.1 P R OD U CT D E V E L OP M E N T STR A TE G Y …………………….……... 23
10 .1.2 K A I Z E N STR A TE G Y COU P L E D WI TH B P R ………………….…….. 24
10 .1.3 TH R E E P R ON G I N TE N SI V E STR A TE G Y …………………………...24
10 .1.4 F OCU S STR A TE G Y …………………………………………………….... 24
10 .2 WO STR A TE G I E S……………………………………………………………... 25
10 .2.1 CH A N G E OR G A N I Z A TI ON A L D N A ……………………………….... 25
10 .2.2 R E L A U N CH K U N G SF Ö N STE R B R A N D ……………………………. 25
10 .2.3 N E TWOR K I N G STR A TE G Y …………………………………………... 26
10 .2.4 B U I L D TO OR D E R STR A TE G Y ………………………….………….....26
10 .3 ST STR A TE G I E S……………………………………………….……………..... 26
10 .3.1 R E TR E N CH E M E N T STR A TE G Y …………………………....……….. 27
10 .3.2 M A R K E T COV E R A G E STR A TE G Y …………………………...……..... 27
10 .3.3 CON F OR M A N CE WI TH I N D U STR Y STA N D A R D S…………….…. 27

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 10 .4 WT STR A TE G I E S……………………………………………………………...27
10 .4.1 B R E A K I N G TH E CL U TTE R STR A TE G Y ………………………..… 28
10 .4.2 I N TE R D E P E N D E N CY ………………………………………….…… 28

11- A TL A N TI S SOL U TI ON S……………………………………………………….… 28

11.1 F R OM A CL I E N T TO A P A R TN E R ………………………………………... 28
11.2 D I SI N TE R M E D I A TI ON …………………………………………………….. 29
11.3 L E SSE N TH E B U R D E N ……………………………………………….……..30
11.4 G R A TI S……………………………………………………………………….…31
11.5 I F Y OU D ON ’ T G O TO TH E M , TH E Y WON ’ T COM E TO Y OU …..…..31

12- TH E A CTI ON P L A N ……………………………………………………….………32

12.1 OB J E CTI V E S……………………………………………………………….….. 32
12.2 D R I V I N G F OR CE S…………………………………………………………….32
12.3 R E STR A I N I N G F OR CE S………………………………………………….….32
12.4 A CTI ON P L A N N I N G …………………………………………………………32
12.5 E X P L A N A TI ON …………………………………………………………….….33

13- CON CL U SI ON ……………………………………………………………………....34

14- R E F E R E N CE S………………………………………………………………….……35

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1-Executive Summary

Providing marketing solutions ain’t easy . It req uires patience, curiosity and lots of research . It also
involves facing th e truth ab out oneself and daring to ch ange it.

In th is paper, th e Atlantis team is ch allenged to get marketing solutions for an amb itious w indow
manufacturer named K ungsfönster. Th e team h ad to investigate appropriate ex ploitation ch annels of
a new governmental allow ance called th e ROT. Since th e b eneficiaries for th is new law are individual
h ouse ow ners, th e consultancy team h ad to focus on adding th is segment to K ungsfönster target
market.

A research effort w as th en planned and carried out to collect sufficient data ab out th e company w ith
its ups & dow ns, its current customers b oth th e important and th e minor ones and its competitors;
‘ b ig b roth ers’ as w ell as th e nich e opponents.

Videotaped interview s of th e target market w ere taken and carefully ob served to identify th e
consumer needs and req uirements. Th e market w as also critically ex amined to uncover th e ‘ selling
h ab its’ of K ungsfönster and to ex amine h ow b usiness is done in th e construction industry .

To come up w ith clear, feasib le and most importantly affordab le solutions, Atlantis h ad to give
enormous care to strategic planning meth ods, using; th e SWOT analy sis to verify th e strength s,
w eaknesses, opportunities and th reats to th e b usiness, and th e TOWS matrix for a more advanced
situational analy sis w h ere environmental th reats and opportunities are match ed w ith th e company ' s
internal w eaknesses and strength s.

Finally as th e picture b ecame clearer, Atlantis made a sh ort list of some solutions th at th e team
th inks are more relevant to th e issue of th e study b oth on sh ort and medium terms.

Disintermediation th rough an efficient w eb site, th e need of strategic alliances w ith construction

companies and a new b lood inj ection in th e sales force, w ill all b e portray ed in a step b y step action
plan.

We are th e Atlantis team. And th is is our paper.

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2- O verview

“ It pay s to plan ah ead; it w asn’t raining w h en N oah b uilt th e ark”

Any rational company keen to make it in th e b usiness arena, is supposed to get prepared ah ead for
w h at’s aw aiting dow n th e road.

For Creative Marketing, w e w ere asked to assess a small b ut amb itious w indow manufacturer named
K ungsfönster, to seiz e a risen opportunity (th e ROT allow ance) and gain a larger market sh are. We
approach ed th e market for a b etter understanding and studied th e competitors to know w h at takes
th em to th e front. ‘ Wh at people th ink’ is alw ay s th at missing puz z le w h en marketing is at th e center
of interests. We h ad to interview and ob serve potential clients; carefully listening to th em and
investigate th eir level of involvement in th e b uy ing possess, to come up later on w ith compatib le
tactics.

Along th is paper w e w ill b e answ ering th e follow ing q uestions:

- Wha t’ s th e purpose of our marketing effort?

- Who i s our client K ungsfönster, w h at are its competitive advantages and w h o are th e
competitors?

- Wha t’ s th e ROT allow ance and h ow can w e h elp K ungsfönster capitaliz e on it?

- Who i s our target market and h ow can it b e approach ed?

- Wha t strategies sh ould b e implemented to ach ieve th e marketing goals, and h ow much
w ould it cost our client?

We w ill finally provide K ungsfönster w ith a road map: a concise action plan th at w ill w rap up our
paper.

3-Th e p urp o s e o f th is res earch

As a team of consultants, Atlantis group w as assigned a case study w ith a real life prob lem and w as
invited to recommend possib le solutions for th e issue. Th e prob lem may b e summariz ed as follow :
“ K ungsfönster is a slim w indow manufacturer w ith a h istory of selling to b usiness clients
(construction companies, dealers...). Th e Sw edish government introduced a new allow ance called

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‘ th e ROT’, according to w h ich h ouseh olds aiming to make interior constructions, including w indow
replacement, w ill get a tax deduction up to 50 % on th eir lab or cost. Th e q uestion is ho w c a n w e
m a k e K u n g s f ön s ter b en ef i t f r o m thi s R OT o p p o r tu n i ty ?

By answ ering th e previous q uestion, w e w ill also tackle b rand aw areness issues, market positioning
and strategic planning.

4-Co mp an y A n al ys is
Located on th e w est coast of Sw eden, K ungsfönster is a small company w h ich manufactures and
sells aluminum-sh ielded w ood w indow s. K ungsfönster is mainly cooperating w ith w indow installers
and construction companies. Th e slender w indow design and its narrow frame are valuab le q ualities
on th e N ordic market. Day ligh t is generally considered important for N ordic people due to th e
climate. K ungsfönster’s w indow s allow more ligh t in-take w h ile simultaneously keeping th e
traditional w indow appearance (K ungsfönster 20 0 9).

K ungsfönster w ould like to enlarge its market sh are domestically and consider going international in
a few y ears. Currently , th e ROT allow ance h as b een implemented, w h ere individuals can b enefit
from h ouse renovations (T. Persson, personal communication, 20 0 9-0 2-0 4). K ungsfönster h as a
great opportunity to take advantage of th is and h ence more compreh ensively target th e large
individual market.

According to K otler, Wong, Saunders & Armstrong (20 0 5) b rand is a name, term, sign, sy mb ol,
design or a comb ination of th ese, th at identifies th e producer or seller of th e product or service. We
th ink it is necessary to promote K ungsfönster’s products and services as a w h ole b rand to estab lish a
w ell-know n image.

As an old Ch inese say ing goes “ K now th e enemy and know y ourself, y ou can figh t a h undred b attles
w ith no danger of defeat” . Th is could b e related to th e b usiness w orld. Th e b usiness w orld is like a
b attlefield. To gain a dominant position in th e market, it is crucial to know y ourself and competitors
w ell enough b efore making any strategy . Here, w e go th rough th e company strength and w eakness
analy sis.

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Str en g th s :

1-To p m a n a g em en t k n o w ho w o f en g i n eer i n g : E ngineering b ackground of top management is

an advantage for th e company , as it calls for deep know ledge of th e products and th e manufacturing
procedures. Furth er, a more tech nical perspective can b e included in th e strategies.

2- N a r r o w f r a m e: Th e narrow frame design increases th e glass proportion of th e w indow , b ut its

appearance remains traditional.

3- L a r g e d a y l i g ht s p r ea d i n g : Th e result of th e narrow frame design is th at w indow s w ill allow

more ligh t into th e h ouse and th e w indow gets a b etter u-value. Due to th e N ordic climate, th is can
b e valuab le for th e target customer groups, as th ey get more w armth and ligh t into th eir h ouse.

4- Cu s to m i z ed p l u g a s s em b l y : Plug assemb ly design makes th e installation of th e w indow s q uite

easy , and th e w indow s are also compatib le w ith ex isting w indow frames. E ith er for setting up b rand
new decoration or upgrading old ones, th e consumers w ill find satisfy ing solutions. In addition, PCB
cleanup is saved.

5- F r ee m a i n ten a n c e: Th e w indow maintenance is free of ch arge. Th is is also a selling point

compared to oth er competitors.

6- F l ex i b l e p r o d u c ti o n p a tter n : Customiz ed services are offered to customers for different

req uirement of manufacturing. Meanw h ile, th e company keeps monitoring market needs and makes
relevant improvements.

7- L o n g l a s ti n g -s u p er i o r c o l o r i n g : A special tech niq ue is applied to th e w ooden components to

prevent color fade w h en using cleaning liq uid.

W ea k n es s es

1- N o o b j ec ti v es : Th e Company h as no ex plicit strategic purpose, identity , mission, vision or

ob j ectives. Th ese elements w ould assess th e company evaluation on w h eth er or not it is on th e righ t
track. With out th eir guidance, strategic priorities are difficult to estab lish .

2- I n c o m p l ete f u n c ti o n a l i ty o f Web s i te: Th e function of th e company w eb site is currently q uite

incomplete. N o one is in ch arge of th e regular updates and maintenance. It is only provided in
Sw edish w h ich makes it h ard for it to penetrate international markets and communicate w ith
international customers. Furth er, it h as no purch asing function.

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3- L i m i ted m a r k eti n g p r es en c e o n m a r k et: th e interview s w e’ve conducted revealed a lack of
b rand aw areness. As far as w e know , K ungsfönster seldom attend industry ex h ib itions and merely
do some advertisement in industrial magaz ines.

4- A f ter s a l es s er v i c e: K ungsfönster h as no formal, sy stematic after sales service mech anism in

place. Th is implies th at th e process of after sales issues needs to b e structured into a standard sy stem
to guarantee customer satisfaction.

5- N o B 2C c u s to m er d a ta b a s e: K ungsfönster is primarily doing b usiness w ith companies.

How ever, individual customers stands for a large part of th e entire market, especially w ith th e new
ROT allow ance entering th e picture. Furth ermore, th ere is no customer datab ase w h ich makes it
h ard to conduct customer analy sis and maintain valuab le customer relationsh ips.

6- N o P -l a b el : K ungsfönster’s w indow s are not p-lab eled. Th is w ould h ave provided a certain
guarantee ab out th e q uality . Meanw h ile th e larger competitors h ave th is lab el and th is can definitely
b e an incentive for customers to ch oose one of th e competitors instead.

7- Wi n d o w s a r e n o t f i r e r a ted : Th e lack of fire classification gets th e practical conseq uences th at

th ey need to tell th is to th e customer w h en th ey demonstrate th eir products. N o auth ority guarantee
for th e customers in terms of anti-fire function.

8- N a r r o w p r o d u c t r a n g e: K ungsfönster only provides a limited range of products.

9- P r o d u c ti o n p r o b l em : Th e manufacturing procedure could b e more cost-efficient to low er th e

terminal prices of th e products, h ence increase th e competitiveness of th e company .

10 - L i m i ted n u m b er o f r ef er en c es : K ungsfönster is in need to b uild up a proper b ase of

references. Branding and an increase in th e numb er of valuab le relationsh ips can enh ance th is.

5- Cus to mer an al ys is
As far as customer analy sis is concerned, w e identified tw o ty pes of K ungsfönster’s customers,
Businesses (mainly ) and Individuals. Before going furth er into th e description of b oth categories, w e
w ould like to stop at w h at private h ouse ow ners consider as a priority w h en making a w indow
purch ase.

For our paper w e h ad to conduct some q ualitative research using th e interview tech niq ue. We
approach ed several Sw edish people w h o w ere over 30 and ow ns a h ouse of th eir ow n. One of th e
main q uestions w e asked w as: ‘ w h at are th e most important th ings y ou’ll consider w h en replacing a

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w indow ?’ Almost all of th em agreed th at price and delivery time are on th e top of th eir list. Oth er
priorities included sound proof glass, ligh t in-take and company references.

Back to our customer analy sis. E ven th ough w e w ill b e talking in detail ab out K ungsfönster
customers in th e segmentation section, let’s h ave a q uick look at th e large source of b usiness for
K ungsfönster: Businesses.

B u s i n es s c u s to m er s
Th is category includes arch itects, construction companies and dealers th at act as a
‘ middleman’ b etw een our client and th e final consumer. Th ese b usiness customers are
approach ed b y an ex perienced salesperson th at h as b een doing a j ob . Y et, as it w ill b e
ex plained later on, th e relationsh ip b etw een our client and th ose oth er parties is q uite stiff
and far from b eing an eq ual partnersh ip.
I n d iv id u a ls
Under th is umb rella all private h ouse ow ners are considered. Because th ey could not get
directly to th e manufacturer, people of th is segment w ere for very long rely ing on th e
middleman to make th e j ob for th em. Price, delivery and service w ere decisive factors w h en
selecting w indow supplier. Y et w ith a margin price b eing taken b y th e ‘ middleman’ it
b ecomes tough er for a company such as K ungsfönster to keep a cost leadersh ip in th e
market. How ever today , a promising opportunity is appearing in th e market sph ere: th e
ROT. Th e Sw edish government offers an ex tension of th e current sy stem of tax credit for
domestic h ouseh olds and includes th e ROT, repairs and maintenance. By ex tending th e
sy stem, th e government aims to increase th e demand for lab or. Th is can also reduce th e
illegal employ ment in th e construction sector. ( S w e d i s h M i n i s t r y o f F i n a n c e , 20 0 8).

6- Co mp etito r A n al ys is
A large focus of th e strategies for K ungsfönster w as early on in th e proj ect decided to direct online
strategies. Hence th e competitor analy sis made is mainly b ased on th e competitors’ w eb sites and
includes Inw ido, Svenska Fönster, H-fönster, Westcoast and K villsfors. Common to all competitors
is th at prices and delivery time is not specifically presented on th e w eb sites. All competitors can offer
w indow s in a comb ination of w ood and aluminum. Among th ese competitors, it is only K villsfors
th at do not h ave a w eb site in E nglish . Th e analy sis w as conducted in a manner th at K otler, Wong,
Saunders & Armstrong (20 0 5) suggests in order to clarify strength s and w eaknesses of th e
competitors. Th e strength s and w eaknesses elab orated are mainly b ased on information from th e
company w eb sites’.

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6.1 I n w ido
Inw ido got its name in 20 0 5, b ut th e group b rands h ave a long h istory , w h ere th e UK located Allan
Broth ers w as founded in 1811 and E litfönster in Sw eden h as roots b ack to 1924. Visitors of
Inw ido’s w eb page are directly encountered b y th eir vision; “ Letting in th e ligh t – th e one-stop-sh op
for closing th e b uilding” . Inw ido provides a large selection of w indow s and doors and th eir
customers are contractors, consumers and h ouse factories (Inw ido, 20 0 9). Th e company h as
factories in all N ordic countries th at are specializ ed to th eir th ree customer segments, and w ork w ith
all materials. Inw ido proclaims itself to b e a leading company in th e N ordic market w h en it comes
to w indow s and ex terior doors; h ow ever later on th ey describ e th emselves as th e second largest
play er on th is market (Inw ido, 20 0 9).
Th e company h as b een grow ing mainly b y acq uiring local companies, of w h ich many h as a long
h istory . Th e company group h as approx imately 40 0 0 employ ees. Inw ido is ow ned b y th e Sw edish
private eq uity group Ratos, w h ich ow ns 95% of th e company and th e last 5% is ow ned b y th e
ex ecutive management (Inw ido, 20 0 9).
A b rief description is given ab out th e operations from 20 0 5 to 20 0 8, including facts concerning
ow nersh ip, acq uisitions, strategic decisions and estab lish ments. One column, “ Press” , also includes
contact information to th e CE O and CFO, oth er th an th at th e general contact information is
presented. A link takes th e visitor to previous press releases. Under th e column “ Investor “ , th e
visitor w ill find annual reports from 20 0 5-20 0 7. As th e annual reports are very compreh ensive, it is
possib le to easily get access to a lot of information ab out Inw ido th rough th e w eb site. Also some
key ratios and figures are presented. A column concerns new s, and it is also possib le to log in to th e
companies intranet from th e w eb page (Inw ido, 20 0 9).
On th eir w eb site, Inw ido presents th eir 26 b rands w ith a link to all of th em. Th e b rands are located
in Sw eden, Finland, N orw ay , Denmark, UK , Poland, Ireland and Russia, w ith th e h ead office in
Malmö. Wh en it comes to th eir markets, th e N ordic ones are th e main markets. Th e oth er
represents th e grow th markets. Th e R&R market (reb uilding and refurb ish ment) stands for more
th an tw o th irds of sales made b y th e G roup. All markets h ave b een ch aracteriz ed b y h eavy economic
ex pansion and a h igh level of b uilding. Th ey h ave production processes in all of th e countries ex cept
Ireland. In 20 0 7, consumers stood for 55% of th e purch ases from Inw ido, contractors 28% , h ouse
factories 9% and oth er ty pe of sales 8% (Inw ido, 20 0 9).
Th e strategies of th e company are represented b y four points; focused grow th (organically and
th rough acq uisitions), optimiz ed operations (purch ase, production and sales coordination), strong
local b rands (distrib ution of multi-b rand and multi-ch annel distrib ution) and also decentraliz ed
structure (local b usiness development and profit responsib ility ) (Inw ido, 20 0 9).

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A sh ort presentation of h ow th e organiz ation is b uilt up, w ith names of top management is also
presented. It also describ es th at Inw ido is a decentraliz ed organiz ation. Th e company h as an
education center w h ere future key employ ees are educated, called Inw ido Academy (Inw ido, 20 0 9).
Str en g h ts :
1- Th e siz e of th e company makes it possib le to take on large contracts for th e maj or construction
firms and h ouse b uilders.
2- Development of energy efficient w indow s.
3- Acq uisitions of strong, local b rands and many opportunities to grow in th e grow th markets.
4- Resource-strong, w h ich h as resulted in clear and w ell-defined strategies, e.g. new b rand strategies
h as b een implemented.
5- A new central organiz ation for purch ase h as b een b uilt up, to improve th e cost efficiency .
6- Specialists w ith in b oth aluminum and w ood h ave b een h ired.
7- Internal training th rough th eir institute Inw ido Academy makes it possib le to ensure th e
competence of th e employ ees w ith in th e group.
W ea k n es s es :
1- N o environmental concerns describ ed on w eb site, oth er th an th e energy efficiency of th e
w indow s, no ex plicit environmental policy .
2- Inw ido operates under many local b rands w ith decentraliz ed structure, w h ich implies th at one of
th e b rands can damage th e reputation of th e entire group, and it can b e h ard to control all different
b rands.
3- It can b e h ard to create aw areness for Inw ido as a b rand b ecause of th e different b rands in th e
group.

6.2 Sv en s k a F ö n s ter
Th e company claims to b e th e leading manufacturer in Sw eden w h en it comes to w indow s, it is
located in E dsb y n and ow ned b y DOVISTA A/S. Values and goals are presented on th e w eb site.
Th ey are h ow ever not very specific, more h ow th e company w ants to b e perceived (Professionalism
th rough cooperation, flex ib ility , h umility , long-sigh tedness and courage) (Svenska Fönster, 20 0 9).
Th e model company ob j ective w ith in th e VK R G roup is to create companies th at treats th eir
stakeh olders in a superior w ay , and are w ell-prepared for grow th . (Svenska Fönster, 20 0 9).
Svenska Fönster h as approx imately 720 employ ees, w ith th e ob j ective to b e th e leading supplier in
E urope concerning front w indow s and outer doors. Svenska Fönster is one of th e ten independent
b rands in th e group, w h ich implies for cooperation proj ects w ith for ex ample Velfac th at also is a
part of th e group. Svenska Fönster in turn, produces and promoted th eir products under th ree

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different b rands, SP Fönster, Trary d Fönster and Mockfj ä rds Fönster (Svenska Fönster, 20 0 9). Th e
manufacturing of French w indow s and w indow s for th ese th ree b rands is made b y th e company
Svenska Fönster Production. Th e plant is one of th e largest in E urope for w indow production.
How ever, production is also made in Söderh amn and Lingb ooch in Poland. Svenska Fönster h as its
production and h ead office in E dsb y n and th e products are market and sold th rough SF sales
company . E ach different b rand; SP Fönster, Trary d Fönster and Mockfj ä rds Fönster acts as
individual companies w ith ow n w eb sites, h y perlinked from th e Svenska Fönster w eb site (Svenska
Fönster, 20 0 9).
Th e h istory from th e start up in 1935 to current day s describ es h ow Svenska Fönster h as b ecome a
large w indow manufacturer th rough acq uisitions and oth er strategic ch anges. Th ey h ave a press
forum including new s concerning an acq uisition made in 20 0 8 to get into th e UK market. (Svenska
Fönster, 20 0 9) It is possib le to sign up for an e-mail on th e w eb site. Artq allery ex ists b ut w ith only
one picture. Some contact information is presented as w ell as a description of h ow to get to E dsb y n.
In th e Sw edish version career opportunities are presented w ith information ab out th eir trainee
programme (w ith in DOVISTA A/S), and th ey ex plicitly target students (Svenska Fönster, 20 0 9).
Str en g h ts :
1- Th e large plant in E dsb y n.
2- Th e environmental policy w h ere th e aspects of production, distrib ution and use of th e products
sh ould b e as environmental friendly as possib le.
3- Svenska Fönster h as b een in th e b usiness for a long time and th e th ree different b rands all h ave
functional w eb sites w h ere th ey encourage taking advantage of th e ROT allow ance.
4- Th e company h as retailers all over Sw eden w h ich calls for great opportunities to compete on th e
entire Sw edish market.
5- Svenska fönster h as large opportunities to grow on for ex ample th e UK market th rough energy
efficient w indow s. Th ey got into th e UK market th rough an acq uisition in 20 0 8.

W ea k n es s es :
1- As one of th e ten independent b rands in th e group DOVISTA A/S th e identity b ecomes vague.
Th is group also includes for ex ample VE LFAC, w h ich easily can b e perceived as independent
companies b y consumers. Links to th e th ree b rands of Svenska Fönster are also w ell h idden on th e
w eb site.
2- It is ob vious th at Svenska Fönster w ants to grow . On th eir w eb site, values and goals are presented
b ut th ey are not very specific, more h ow th e company w ants to b e perceived. Also h ow and th rough
w h ich of th eir b rands th ey w ant to grow stay s unclear.

12
3- As Svenska Fönster grow s th rough different b rands, it migh t b e h ard to create aw areness ab out
Svenska Fönster as a group.

6.3 H-f ö n s tr et
H-Fönstret, founded in 1978 and located in Ly sekil w ith approx imately 85 employ ees, describ es
th emselves as one of th e largest aluminum/w indow manufacturers in Sw eden and part of K -Svets
Förvaltningsgruppen. Th e w indow s are specializ ed to each customer’s individual needs and all
w indow s h ave a U-value starting from 1.2 (H-Fönstret, 20 0 9).
It is also possib le to do a search on th e w eb site. H-Fönstret describ es th eir q uality policy and
provides th e visitor w ith press releases and new s. Contact information is presented to some of th e
employ ees, e.g. top management and sellers. Job opportunities are also presented w h en th ere are
vacancies. Th ere are pictures on previous j ob s and new h ouses as w ell as renovations, and it is
possib le to search for reference ob j ects. E x port stands for 15 – 20 % of th e sales and is sold to
markets in Western E urope (H-Fönstret, 20 0 9).
Th e products h ave a long life length demanding minimum maintenance. Th e company does not sell
directly to private customers; in th at case th e customer needs to do th e purch ase th rough a local firm
or representative, w h ich can b e found in a list on th e w eb site. Th e list sh ow s th at most of th e
representatives are located on th e w est Coast and th e south ern parts of Sw eden. Th ere is also an
E nglish version of th e w eb site, w h ich includes less information th an th e Sw edish one (H-Fönstret,
20 0 9).
Some of th e advantages w ith th e company are according to th emselves; superior length of lifetime,
q uick delivery , easily installed w indow s and no w eath er ex posure on th e w ood. Th ey h ave an
environmental policy and environment declarations for th e product groups. One of th e declarations
is from 20 0 4 and Peter Balkow is th e “ contact person” (H-Fönstret, 20 0 9). As Peter h as left th e
company for K ungsfönster th is could b e removed or updated.
One part of th e w eb site concerns w indow s and glass, and includes e.g. ventilation, h ouseb reaking
and safety -and security glass. How ever, th ere is no information availab le as th is part of th e w eb site is
under construction (H-Fönstret, 20 0 9).
It is possib le to ask q uestions on th e w eb site. Th ey also talk ab out th eir superior delivery time. Th ere
are h ow ever no time limit mentioned, j ust th at th e customer sh ould contact th e company to find out
(H-Fönstret, 20 0 9).
Str en g h ts :
1- Specializ ed in for ex ample soundproofing and maintenance free w indow s w ith low U-values.

13
2- Customers are ab le to create an account on th e w eb site, and th ere is compreh ensive information
ab out th e products online. Also complaints can b e sent th rough th e w eb site.
3- A clear environmental policy presented on th e w eb site.
4- H-Fönstret offers 10 y ears guarantee for condensation b etw een th e glass.
5- As th e internationaliz ation process already h as started, H-Fönstret can make use of th eir
international contacts and th e location on th e w est coast to ex pand to new markets, e.g. UK .
W ea k n es s es :
1- E ven th ough th e w eb site includes some good functions, it is not updated and th ere are
information missing. Also, significantly less information is presented in th e E nglish version of th e
w eb site.
2- Th e location makes it natural to focus on th e w estern part of Sw eden w h en it comes to sales.
How ever, H-Fönstret does not sell directly to private customers. In th at case, th e customer needs to
do th e purch ase th rough a local firm or representative w h ich can b e found in a list on th e w eb site.
As most of th em are located on th e w est coast and south ern part of Sw eden it is a limitation to
increase sales geograph ically .

6.4 W es tc o a s t W in do w s A B
Th e privately ow ned company co-founded in 1995 b y Claes Holm w ith approx imately 65 employ ees
offers customiz ed products on demand of th e customers, and h alf of th e production is ex ported to
E ngland. Th e w indow s are produced in a manner th at w ill make it very slim and w ater resistant. Th is
demands minimum maintenance and makes it strong (WestCoast Window s, 20 0 9).
On th e front page of th e w eb site in th e Sw edish version, th ey h ave new s, w h ere th ey present th at
th ey w ill participate in a House fair in Malmö in March . Th ey also h ave a notice ab out ROT,
follow ed b y a link to Skatteverket’s w eb site. Th ere is also a q uestion to th e visitor if th ey w ant to
b ecome a retailer for West Coast Window s (WestCoast Window s, 20 0 9).
Th e company describ es its environmental concerns as using w ater-b ased paint, separation at source
and th at th ey recy cle. Th ey also provide references w ith pictures on previous j ob s. Contact
information is clear and general information ab out all employ ees and th eir position w ith in th e
company . Address, map and list of retailers are also presented (WestCoast Window s, 20 0 9).
All product models are presented w ith a link to each product w ith more detailed product
information and a picture. One link concerns th e U-value, w h ere a definition is presented, as w ell as
th e statement th at all West Coast w indow s h ave a U-value of at least 1.0 and h igh er. Some
information ab out allow ance th at is no longer in use is also presented (WestCoast Window s, 20 0 9).

14
Th e company state th at th ey can deliver special models to satisfy each customers’ individual needs.
Th ey also provide instructions on h ow to measure w indow s. West Coast Window s sh ow s th at th ey
offer energy -marked w indow s, according to th e Sw edish E nergy Agency and w h ich of th eir w indow s
th at is most energy efficient (WestCoast Window s, 20 0 9).
Str en g h ts :
1- E ven th ough all information is not up to date, th ere is plenty of good information on th e w eb site.
For ex ample it include new s, information ab out th e ROT allow ance, U-values, environmental
concerns, references of previous j ob s and instructions on h ow to measure w indow s. Th e products
are w ell describ ed w ith pictures.
2- Th e guarantee of th e products is ex plicitly 10 y ears w ith some reservations.
3- Wh en manufacturing its products, profiles th at th ey h ave manufactured th emselves are used. 4-
An advantage of th is can b e th e possib ility to comb ine w indow ty pes in one frame.
5- Th e products are manufactured in accordance to th e “ P” sy stem of th e Tech nical Research
Institute of Sw eden, in order to ensure q uality .
6- As h alf of th e production is ex ported to E ngland, th ere are large opportunities to grow w ith h elp
of estab lish ed international contacts.
W ea k n es s es :
1- Th e w eb site needs to b e seen as a w eakness as th ere is information th at is not up to date.
2- Th e location of not j ust th e company b ut mainly th e retailers is a limitation, as th ey are mainly
located on th e w est coast and south ern part of Sw eden w h ich can h inder increase in sales
geograph ically .

6.5 K v il l s f o r s
K villsfors, w ith th eir 71 employ ees (Affä rsdata, 20 0 9), is privately ow ned. Th e company is located in
K villsfors in Små land. Th e vision is to b e b est w ith in w ood/aluminum sh ielded w indow s. Th e
factory w as founded in 1925 w ith th e name “ K villsfors Trä industri AB” . In 20 0 3, th e factory
ch anged name to “ K villsfors Fönster AB” (K villsfors Fönster, 20 0 9). On th e w eb site, one find a
PDF presentation w h ich sh ow s references from previous j ob s and th e products offered b y
K villsfors. A film is also posted th at includes information ab out th e company , such as th e fact th at
th e company is th e largest privately ow ned w indow company in th eir territory of th e industry , th at all
operations are located in K villsfors in Små land and th at th ey can adapt to each customer’s individual
needs b ut also produce standard w indow s. Information ab out th eir partners is also included and th ey
state th at q uality , fire safety , isolation and U-value key issues to w ork upon. K villsfors deliver
standard as w ell as specializ ed w indow s, h aving good U-values (K villsfors Fönster, 20 0 9).

15
Th ere are clear contact information to th e employ ees and th eir position w ith in K villsfors are sh ow n.
Th e products, w indow s and doors are w ell describ ed. Some information on th e w eb site ex ists th at is
not up to date (for ex ample a b roch ure ab out trade fair information in 20 0 8). Th ere is a document
on w h at th e guarantee includes b ut not for h ow long th e guarantee is valid. In anoth er document it
can b e perceived as tw o y ears guarantee.
A presentation describ es h ow to assemb le and maintain th e w indow s. Th ere are also draw ings of
each product. A gallery is used on th e w eb page to sh ow pictures on previous j ob s. K villsfors present
th eir environmental policy , w h ich includes among oth er th ings, to make energy -saving w indow s and
sort out th e w aste (K villsfors Fönster, 20 0 9).
Str en g h ts :
1- Research and Development. K villsfors h ave a large focus togeth er w ith th eir suppliers on research
to come up w ith innovations and product developments.
2- Th e content of th e w eb site includes a film and lots of valuab le information for th e customers,
such as information ab out th eir partners and q uality , fire safety , isolation and U-values.
3- Th e company w ith its long h istory of producing w ood/aluminum w indow s since 1953. Th ey h ave
b uilt up an organiz ation th at is ab le to do h igh q uality products, and th e products are tested and
approved to E uropean standards.
4- K villsfors try to decrease noise coming th rough th eir w indow s, and also try to make th em as
fireproof as possib le.
W ea k n es s es :
1- E ven th ough th e w eb site includes good information th ere are also information th at are not up to
date, and th ere could b e more information included.
2- K villsfors is somew h at restricted to th eir factory as all employ ees are located th ere and it seems
like most of th e operations are h andled w ith in th e factory .
3- Th ere is no information concerning th e sales of K villsfors products, oth er th an contact
information to th e factory .
4- Wh en it comes to guarantee th ere are a variety of information on th e w eb site w h ich easily can
confuse th e consumer.

16
7- Wh at’ s th e R O T ?

In order to strength en th e lab or market politicy and stimulate demand w ith in th e construction sector
th at w as h igh ly affected b y th e financial crisis, th e Sw edish government proposed investments of
more th an 8 b illion SE K . Among oth er, th e tax w ill b e decreased for renovation, maintenance and
additional construction of h ouses, th is sy stem is called ROT (Sw edish Ministry of Finance, 20 0 8).

A ROT tax allow ance is a tax deduction for ex penses an individual h ave for repairs and maintenance
or additional construction of a small h ouses or apartment. Th is implements th at individuals, w h o
renovate, reb uild or maintain th eir small h ouse or cooperative apartment w ill get a tax deduction of
50 % of th e cost, w ith a max imum of 50 0 0 0 SE K per y ear per person. Important to mention is th at
th e tax reduction w ill only consider th e cost of lab or and not material, eq uipment or oth er costs.
(N ox ongruppen, 20 0 9).

Th e tax deduction is connected to th e individual person, and it is th e ow ner of a small h ouse or

apartment th at is eligib le for th e tax deduction from ROT proj ects. For a cooperative apartment, th e
w ork sh ould b e carried out inside th e apartment th at th e ow ner is independently responsib le for.
Ty pical repairs and maintenance w ork can b e in- and outside such as painting, ch ange of material on
roof, ch ange of kitch en/b ath room eq uipment, radiators, b oiler, floor or w all material and of course
doors and w indow s.

As th e tax deduction is connected to th e individual (50 % of th e cost or max imum 50 0 0 0 SE K per

y ear) and not th e property , it implies th at tw o ow ners of a small h ouse can get 2 * 50 0 0 0 = 10 0 0 0 0
SE K per y ear. Th is means th at th e tw o ow ners can renovate for a max imum of 20 0 0 0 0 SE K (for
w orking h ours) per y ear to get th e cumulative allow ance.

ROT th ereb y is definitely one appealing opportunity for K ungsfönster (Skatteverket, 20 0 9).

17
8- An o verview o f th e M ark et

In b usiness magaz ines every w h ere and from th e four corners of th e w orld, ex perts are professing th e
near death of manufacturing b usinesses if th e old stiff tradition of ‘ D o it m y o l d g o o d w ay ’ is kept
ongoing. (Th e economist, th e collapse of manufacturing , 20 0 9)

Th e rapid grow th of th e w orld economy ch allenged industries and markets stab ilities, and repudiated
granted assumptions of th e most prosperous b usiness area of all time. Th e construction market in
Sw eden, w indow s in particular, w ould definitely not make th e ex ception. How ever, great
opportunities can spring from th e less ex pected spots.

Sw eden is one of th ose few fortunate countries th at didn’t get much damage in th e Second World
War. Th e b lessing of neutrality made it th at a great sh are of b uildings and constructions are dating
for over 70 y ears ago. In a culture th at favors reforms over ab olish ment, companies, such as
K ungsfönster, manufacturing w indow s th at offer an added value of slimness, adaptab ility and
efficiency w ill definitely sort out some very lucrative openings.

K ungsfönster h as a long tradition of making b usiness w ith b usinesses; selling in b ulk upon demand
for mainly new ly constructed units and concretiz ing arch itect’s designs. Th e ROT allow ance, w h ich
w as discussed earlier, is adding a new segment th at, th ough it w as already part of th e supposed
market sh are of K ungsfönster, w asn’t mainly covered and properly served; and th at is small h ouses.
But ROT in itself isn’t a guaranty for K ungsfönster potential profit, and th e ‘ D o it m y o l d g o o d w ay ’ w e
talked ab out earlier w ill b e of no h elp to th e b usiness neith er.

E ith er w e call it th e ‘ Th e middle man’, th e th ird party or simply th e dealer, a fine margin of th e
b usiness profit is taken b y h im/h er. Th e essence of Internet economy is to h elp b usinesses get th e
optimum profit th rough , among oth ers, w h at is commonly know n as disintermediation.

A q uick look b ack at K ungsfönster past and ex isting operations reveals a h uge dependence on
b usiness clients, w e can h ardly call th em partners since no ex clusive or partial agreements ex ist
b etw een K ungsfönster and th em, and no preferential promotion are offered to attract th eir
collab oration. Only estimates and pro-forma offers, determine w h eth er or not b usiness is done w ith
our w indow manufacturer. K ungsfönster relies on th e q uality of th eir product; respects of delivery
deadline and after sales follow up to encourage professionals to make b usiness w ith th em over time.
G etting th e loy alty of ones customers needs more th an th at. Th e customers need to feel special to

18
th e b usiness, and th at th ey are rew arded on b eing th e loy al people out th ere (w e w ill b e talking more
ab out h ow to do th at in th e solution section of th is paper).

Betw een 20 0 7 & 20 0 8 th e aluminum w indow market sh are h as j umped from 41% to 48%
(K ungsfönster, 20 0 9), stressing a grow ing demand for th is particular product in th e Sw edish market;
an important new s for K ungsfönster. Besides th e large companies th at h ave th eir strong market
sh ares and th eir ex clusive and loy al clients, th e nich e markets is disputed among many nich e
competitors and w idely open to oth er potential ones. Th is loose situation makes it even h arder for
K ungsfönster to gain more; as b oth th e new comers and th e ex isting ones w ill b e competing on w h at
‘ adding value tech niq ues’ w ill get th em ah ead of oth ers on th eir race.

Th e good th ing ab out unstab le markets is th eir ab ility to stretch and resh ape alw ay s giving innovative
and ‘ figh ter’ b usinesses a second ch ance.

8.1 Seg men ts iden tif ic a tio n

K ungsfönster aimed target may b e divided into different segments: Residential Buildings,
institutional (governmental) b uildings, commercial (private) b uildings and private h ouses.

Th e th ree b uilding segments th ough h ave different interests in terms of designs and w indow s
req uirementsm th ey h ave pretty much th e same ‘ b uy ing h ab its’. Th ey are generally new ly constructed
units w h ere a construction company in ch arge is th e customer. Th ey ask for competitive b iding.
How ever it is still possib le in such cases for, arch itects or plant managers to recommend a
manufacturer and favor it over oth ers sparing all parties th e time consuming process of b ids. Th is
particular aggregate segment is th e one th at K ungsfönster h as b een b oth concentrating on and
approach ing w ith sales people so far.

Private h ouses are th e area our paper is concentrated on. It’s a h uge market w idely uncovered
b ecause th e process h as b een mistakenly considered to b e complex , ex pensive to reach and not th at
lucrative.

House ow ners h ave b een long rely ing on professionals to advice th em on from w h ere to get th e
sanitary , th e w ooden door or th e aluminum w indow . Carpenters and small construction contractors
h ave b een long doing th e w ork for th em and ch arging th em for th eir ‘ consultancy ’ services. People
did so b ecause th ey th ough t th is is th e only w ay possib le and b ecause th ey simply couldn’t find direct
sources to th e manufacturers.

19
Th e disintermediation th at Internet offers sh ould b e used b y K ungsfönster to b e out th ere,
accessib le and ready to serve. HOW? We w ill b e elab orating more in th at w h en w e w ill get to th e
Marketing strategies in th e nex t section. Y et w e need to stress on th e fact th at recogniz ing an
opportunity involves some ch anges w ith in th e core b usiness and adapting new understandings th at
many people w ith in th ese b usinesses are not w illing to accept easily . Th is includes b eing ab le to
respond to small orders and increasing th e level of responsiveness to client’s req uests. Our
marketing mix w ill b e a comb ination of preferential prices, ‘ on th e h ouse’ services along w ith th e
competitiveness th at th e slim w indow s originally offer.

9- SW O T A n al ys is

Str en g ths (I n ter n a l ) Wea k n es s es (I n ter n a l )

S1: Top management know h ow of

engineering
W1: N o ex plicit strategic purpose, identity , mission,
S2: N arrow frame vision or ob j ectives

S3: Large day ligh ts spreading W2: Web site

S4: Customiz ation Plug assemb ly - Can W3: Limited marketing presence on market
maintain ex isting w indow frames- PCB cleanup
not needed. P-lab eling (N o differentiation)

S5: Financially Strong investors W4: After sales service

S6:Continuous Improvement W5: N arrow product range

S7: Long lasting-superior coloring W6: Centraliz ed structure (Tall)

S9: Traditional w indow appearance W7: Blind approach

W8: N o B2C customer & customer data b ases
S8: Aluminum sh ielded w indow s (less w ood
more AL) W9: U-value improvement.

S9: Maintenance free w indow s W10 :Self-production

W11: Low Brand eq uity

W12: E mploy ee turnover rate

W13: Delivery time 4 to 6 w eeks.

W14: Window s is not fire rated.

20
Op p o r tu n i ti es (ex ter n a l ) Thr ea ts (ex ter n a l )

O1: ROT allow ance G overnment legislation T1: Large w indow manufacturers

O2: Selling online (E -Marketing) T2: Deteriorating trends in construction industry

O3: N ew Product development (N PD) T3: Intense competition from E astern E urope
countries, Poland & Ch eck Repub lic
O4: Strategic alliances & Dealersh ip
agreements T4: N ew environmental req uirements

O5: Rise in demand for aluminum sh ielded T5: References. (N etw orking)

Window s T6: Seasonal b usiness or climatic ch anges

O6 G eograph ical ex pansion (segments)

O7: K now ledgeab le customers (professionals) T7: Urgency addiction

O8: BPR Business process reengineering. T8: Price sensitive market

O9: TPL agreements for speedy delivery T9: Remoteness of production area

O10 : Marketing reduces prices.

O11: TOT (trainer of trainers) Master

1 0 - T O W S M atrix
TOWS M a tr i x : Str en g th (S) Wea k n es s es (W)

S1: Top management know W1: N o ex plicit strategic

h ow of engineering purpose, identity , mission,
vision and ob j ectives
S2: N arrow frame
W2: Web site
S3: Large day ligh ts spreading
W3: Limited marketing
S4: Customiz ation Plug
I n ter n a l F a c to r s assemb ly - Can maintain ex isting presence on market.

(I F A S) w indow frames- PCB cleanup P-lab eling (N o

not needed. differentiation)

S5: Financially Strong investors W4: After sales service

S6:Continuous Improvement W5: N arrow product range

S7: Long lasting-superior W6: Centraliz ed structure

21
 coloring (Tall)

S9: Traditional w indow W7: Blind approach

appearance W8: N o B2C customer & data
b ases
S8: Aluminum sh ielded
w indow s (less w ood more AL) W9: U-value improvement.
E x ter n a l F a c to r s S9: Maintenance free w indow s W10 :Self-production
(E F A S) W11: Low Brand eq uity
S10 : B2B customers (80 ~20
Rule) W12: E mploy ee turnover rate

W13: Delivery time 4 to 6

w eeks.W14:Window s is not
fire rated

Op p o r tu n i ti es (O) SO: Str a teg i es WO: Str a teg i es

O1: ROT allow ance G overnment • Product Development • Organiz ational DN A

legislation (S1,O3,O8) (W5,O1)

O2: Selling online (E -Marketing)

O3: N ew Product development • K aiz an w ith BPR • Relaunch K ungfonster

(S6,O8) (W11, O10 )
O4: Strategic alliances & dealersh ip
agreements

O5: Rise in demand for Aluminum • Th ree Prong intensive • N etw orking Strategy
sh ielded w indow s strategy (W7,O2,O11)
O6 G eograph ical ex pansion (S5,O6,O2, O4 )
(segments)
• Build- to- Order
O7: K now ledgeab le customers Strategy
(professionals) • Focus Strategy
(S4,O1) & (S8,O5) (W8,O1)
O8: BPR Business process
reengineering.

O9: TPL agreements for speedy

delivery

O10 : Marketing reduces prices.

O11: Training of trainers TOT.

Thr ea ts (T) ST: Str a teg i es WT: Str a teg i es

22
T1: Large w indow manufactures • Retrench ment strategy • Breaking Clutter or
(S1,T3, T1)
T2:Deteriorating trends in G etting h eard
construction industry
• Market Coverage (W11,T1)
T3:Intense competition from (S10 ,T5)
eastern E urope countries, Poland& • Interdependence
Ch eck Repub lic (Price w ar) • Conformance to (W7,T3)
T4:N ew environmentalreq uirements indsutry Standards
(S5S6, T9, T4)
T5: References. (N etw orking

T6: Seasonal b usiness or climatic

ch anges

T7: Urgency addiction

T8: Price sensitive market

T9: Remoteness of production area

TOWS matrix is simply SWOT b ut in a relatively different format (David, 2008). First w e plotted
th e S, W, O and T for K ungfönster. Afterw ards, w e match ed th ese variab les and developed th e
resultant strategy cells i.e. SO, WO, ST, and WT for K ungfönster.

10 .1 SO STR A TE G I E S:

SO are th ose strategies w h ich use K ungfönster’s internal strength s to take advantage of ex ternal
opportunities. Almost all managers w ould like to b e in a position w h ere th ey could use internal
strength s to take advantage of ex ternal opportunities. How ever, normally companies first pursue
WO, ST or WT strategies so as to reach a position w h ere th ey are ripe and ready to conveniently
apply SO strategies.

10 .1.1Product Development Strategy (S1,O8,O3):

By effectively utiliz ing (S1) top management engineering know ledge. N ew Product development
(O3) opportunities activities could b e ex ploited to good effect. In addition, b y utiliz ing th e same core
strength s, b usiness process reengineering (O8) could also b e initiated so as to considerab ly improve
performance in terms of cost, q uality , service and time (Sub ramanian Muth u, Larry Wh itman and
Hossein Ch eragh i 1999).

23
Th eoretically , Product development strategy implies seeking increased sales b y improving present
products or services or developing new ones (K otler 20 0 3).Th is strategy is most appropriate for
K ungfonster as it possesses strong engineering personnel and it’s also very important to catch up
w ith maj or competitors w h o offer b etter q uality products at comparab le prices.

10 .1.2 K aiz en strategy coupled w ith BPR (S6,O8):

K aiz en is a Japanese management ph ilosoph y ty pically know n as " Continuous improvement." ,

kaiz en is at th e h eart of th e q uality ph ilosoph y , and involves th e use of small teams of w orkers for
q uality enh ancement to analy z e and make suggestions for improving th eir ow n w ork. (DeCenzo,
2001).Continuous improvement at K ungfönster (S6) can match and mesh w ith Business Process
Reengineering (O8) so as to improve overall q uality . It could also b e argued th at continuous
improvement is an appropriate strategy w h en a firm enj oy s market leadersh ip. How ever, since
K ungfönster is lagging b eh ind in many respects th erefore it’s not appropriate to solely follow
continuous improvement. Th erefore it is suggested th at th e company sh ould run b oth BPR and CI
in tandem w ith one anoth er so as to ach ieve a competitive advantage in th e domain of competition.

10 .1.3 Th ree Prong intensive Strategy (S5,O6,O2, O4):

Ty pically Intensive strategies req uire rigorous efforts to improve a firm’s competitiveness w ith
currently ex isting products (David, 2008). Th is multi-prong strategy can h elp K ungfönster ex ploit
th ree sets of opportunities. First, b y utiliz ing a strong financial investor b ase (S5) K ungfonster can
afford to capitaliz e on (O6) geograph ical ex pansion b y targeting new emerging segments w h ere
demand is latent and consumer needs are in th e rudimentary stages. Second, to start developing th e
company ’s w eb site as to enab le it to start promoting K ungfönster as a b rand initially and th en after a
w h ile enter into th e mainstream E -marketing (O2).

Th ird, K ungfönster can form allies w ith less know n dealers (O4) in different geograph ical territories.
Th ough in such a case K ungfonster w ouldn’t get much profit b ut w ill strength en its overall presence
on th e market.

10 .1.4 FOCUS Strategy (S4,O1 & S8,O5):

Proposed b y Mich ael Porter, generally focus strategy is pursued for industry segment of sufficient
siz e w ith good grow th potential w h ich is also not vital to success of maj or competitors (David,
2008). Since K ungsfönter w indow s possess th e compatib ility feature of Plug assemb ly w h ich gives
it added value in terms of customiz ation (S4) it can maintain ex isting w indow frames w h ere PCB

24
clean up is not needed so it can readily address ROT allow ance (O1) b eneficiaries. Th is emerging
market can sustain market sh are in th ese dire financial circumstances. Anoth er nich e market w h ere
K ungfonster can focus is th e rising demand for aluminum sh ielded w indow s. As K ungfönster
already manufactures Aluminum sh ielded w indow s (S8) w ith less w ood and more Aluminum, it can
easily target th e (O5) rise in demand for Aluminum sh ielded w indow s and th us capture considerab le
market sh are.

10 .2 WO STR A TE G I E S:

WO strategies intend to improve internal w eaknesses b y taking advantage of ex ternal opportunities.

Q uite often good ex ternal opportunities arise on th e market, b ut firms h ave internal w eaknesses
w h ich prevent th em from capitaliz ing on th ose opportunities (Sub ramanian Muth u, Larry Wh itman
and Hossein Ch eragh i 1999).

10 .2.1 Ch ange organiz ational DN A (W5,O1):

N arrow product range (W5) at K ungsfönster can b e match ed w ith th e nich e b eing created as a result
of ROT allow ance (O1). Instead of b eing a passive company w h ere memb ers try so h ard to b e nice
th at very little is accomplish ed, K ungsfönster sh ould incorporate a resilient approach , w h ich allow s
flex ib ility in reacting q uickly tow ards ex ternal ch anges b ut focuses on a central strategy . Th is
approach w ould transform K ungsfönster DN A genetic make up and h elp it reinvent itself as a small
, more active and customer oriented firm.

10 .2.2 Relaunch K ungfonster Brand (W11,O10 ):

It’s very ob vious th at as a small company K ungsfönster h as low b rand eq uity in terms of b rand
aw areness and associations b uild around K ungsfönster (W11). How ever, b ecause of some
ex tenuating reasons th e company h as not so far invested h eavily in Marketing/b randing activities,
b ecq use it consider it as an additional cost (O10 ). Here w e suggest K ungsfönster to revitaliz e its
b rand as a w h ole. We all live in a b randed w orld, w h ere b rands are all around us. We simply w alk,
talk, w ear, w atch , eat, sleep, drink, th ink and dream in terms of b rands. K ungsfönster top
management must realiz e th e fact th at w h eth er th ey recogniz e it or not w e actually live in a b randed
w orld. For instance, Mr. Bulkaw (CE O) at th e end of every b usy day goes to sleep in a b randed b ed
in h is b randed trousers, and dreams ab out b randed cars, h otels, adventures, sports, and lux uries. In
th e morning h e w akes up and takes b ath in a b randed tub w ith a b randed soap and sh aves w ith a
b randed raz or, th en h e takes b reakfast of b randed cereal and toasts, toasted in a b randed toaster and
th en goes to office in a b randed car and looks at h is b randed h and w atch . In office h e sits on a

25
b randed ch air and w rites w ith b randed pen and paper. But still h e seems h esitant to invest in b rand
b uilding. Amaz ing isn’t it!

10 .2.3 N etw orking Strategy (W7, O2, O11):

One of th e most significant w eaknesses at K ungfönster is th e lack of netw ork or references (W7).
Th is w eakness can possib ly b e minimiz ed or controlled to larger ex tent b y initiating th e e-commerce
initiative w h ich is th e b est B2C b usiness to customer reference b uilding tool. (O2) Selling online (E -
Marketing). Anoth er alternative strategy could b e to ask th e current seasoned salesperson to act as
(O11) master trainer (TOT trainer of trainers) and provide b oth on th e j ob and off th e j ob training
to y oung salespeople. Th is w ould serve as a ch ain reaction leading to a nationw ide netw ork of
netw orks. Th is w ill also h elp ach ieve positive w ord of mouth pub licity for K ungsfönster.

10 .2.4 Build To Order Strategy (W8,O1):

At th e moment K ungfönster h as very little or negligib le individual (B2C) customer b ase or

customer datab ase (W8) mainly b ecause th ere is no direct contact w ith individual customers or
simply K ungsfönster h as difficulty in coping w ith middlemen. How ever, w ith th e advent of th e ROT
allow ances (O1) th e company is looking forw ard to addressing th e w ants, needs and demands of
individual customers (B2C). Th is could b e more specifically done b y follow ing Mich ael Dells’
strategy of b uild-to-order. Th rough th is strategy w e can increase th e numb er of individual customers
and trace record of th ese customers in some kind of customer datab ase. Anoth er important point
K ungsfönster sh ould keep in mind is th at marketing h as a dual j ob of attracting new potential
customers as w ell as maintaining th e current customers th rough follow up visits and many oth er
Confidence Building Measures (CBMs).

10 .3 ST STR A TE G I E S:

As th e name depicts ST strategies utiliz es a company ’s internal strength s to avoid or reduce th e

impact of ex ternal th reats. Th is does not mean th at a strong organiz ation sh ould alw ay s confront
th reats in th e ex ternal environment. (Sub ramanian Muth u, Larry Wh itman and Hossein Ch eragh i
1999).

26
10 .3.1 Retrench ment Strategy (S1,T3, T1):

Retrench ment suggests regrouping th rough cost and asset reduction to turn around declining sales
or profits (David 20 0 8). In such a situation K ungfonster can use its top management know h ow of
engineering (S1) to tackle th e th reat from (T1) large w indow manufacturers b y designing different
packages of w indow s as per needs of different market segments. Th e second th reat (T3) Intense
competition from E astern E urope countries, Poland & Ch eck Repub lic (Price w ar) can b e controlled
to some ex tent b y using affordab le materials such as plastic or reducing th e unnecessary
consumption of aluminum and w ood. Th is defensive retrench ment strategy is appropriate for
K ungsfönster as it is one of th e w eaker competitors and inefficiency , low profitab ility , poor
employ ee morale, and pressure from stakeh olders to improve performance are th e key motivators
for follow ing a b elt tigh tening strategy .

10 .3.2 Market Coverage (S10 ,T5):

We h ave come to know th at th e company is follow ing a b lind approach to market as it does not
h ave any ears and ey es in many territories i.e. sales people. Salesmen b ring new s from market ab out
trends, b uy er b eh aviors, and competitive intelligence (T5) in almost all th e territories and now th ey
only h ave one salesperson. So far th e b usiness is coming from b usiness to b usiness customers (S10 )
th at’s w h y th e impact of b lindness is not felt in totality . How ever, w ith th e advent of th e ROT
allow ance th is th reat can severely affect K ungfönster.

10 .3.3 Conformance w ith industry standards (S5S6, T9, T4):

Financially Strong investors b ase (S5) coupled w ith its prevailing continuous Improvement
ph ilosoph y (S6) can h elp K ungfönster in conforming to th e minimal level of process and product
soph istication in th e sh ort run (T4). How ever, th e company needs to focus on th e long term issues
b eforeh and. Since th e investors are w ell off w e th erefore assume th at th ey sh ould try to enter th e
mainstream market (T9). We mean to b ring production near to w h ere th e oth er competitors are
operating.

10 .4 WT STR A TE G I E S:

WT strategies are termed as defensive tactics directed at reducing internal w eakness and avoiding
th reats. An organiz ation faced w ith numerous ex ternal th reats and internal w eaknesses may indeed
b e an unstab le situation. Th e firm h as to figh t for its survival, merge w ith anoth er company or
simply declare b ankruptcy or go for liq uidation. (David, 20 0 8)

27
10 .4.1 Breaking th e clutter b y getting h eard (W11,T1):

K ungfonster in terms of b rand aw areness is in rudimentary stages and h as low b rand aw areness
(W11) in relation to large w indow manufacturers (T1) w h o h old maj ority of th e market sh are. In th is
relation K ungfonster h as to b e a figh ter b rand and strive for improved visib ility on th e dealers’
sh elves as w ell as in end users evoked set of mind. How ever, K ungfonster needs to b e ex tremely
creative for b reaking th e clutter created b y large w indow manufacturers and someh ow penetrate th e
minds of dealers and customers.

10 .4.2 Interdependency (W7,T3):

Due to ab sence of appropriate numb er of sales persons in various territories w e name K ungfönster’
approach as b lind approach (W7), arguing th at K ungfonster h as no ey es and ears on th e market.
Th is situation h as lead to lack of reference or netw ork (T5). Th is is a serious issue and considerab le
resources sh ould b e allocated to b ring th e company b ack on track. Because w ith out netw orking a
small single firm like K ungfonster simply can’t figh t th e competition. Moreover, now aday s b usiness
is moving tow ards max imum interdependence.

11- Atl an tis So l utio n s

It can b e said th at w ith in every prob lem lies a solution, and w h en y ou closely ex amine th e situation
and th e potential opportunities, as w e did in th is research , th e proper cards to b e play ed b ecomes
apparent.

In th is final section of our paper w e w ill b e providing K ungsfönster w ith some recommendations
and tactics to get full b enefit over th e ROT allow ance and strength en it’s presence on th e market.
We w ill also summariz e our effort in a neat one-page action plan th at w e b elieve, and h ope, w ill meet
our client’s ex pectations.

11.1 F r o m a c l i en t to a p a r tn er : a Wi n Wi n s i tu a ti o n

In b usiness as in politics every b ody is looking for an ally , a collab orator w h o w ill cover for y ou and a
partner w ith w h om y ou w ill sh are th e risk and upgrade th e prob ab ilities of success.

As mentioned b efore, th e relationsh ip th at K ungsfönster h as w ith its b usiness clients lacks

consistency and regularity . Th e decision of making b usiness w ith a w indow manufacturer depends
on th e offer th is later h as given to th e construction company . Th ere is no room for loy alty h ere.
How ever th is is far from b eing an ab solute truth th at can’t b e ch allenged or ch anged. K ungsfönster
is rely ing on its seriousness, th e q uality of its products and delivery time to w in th ese b usiness clients’
trust, making th em partners h ow ever, needs more th an th at.

We r ec o m m en d K u n g s f ön s ter to make partnersh ips w ith small construction companies eith er

ex clusive or partial ones, in such a w ay th at th ese b usinesses w ill b e given K ungsfönster p r i o r i ty i n

28
 thei r l i s ts , r ec o m m en d a ti o n to thei r c l i en ts and f r ee a d v er ti s em en t; including display ing
b roch ures and catalogues of K ungsfönster in th eir offices, direct links to K ungsfönster from th eir
w eb site in th eir official w eb sites and mentioning its name as th e ‘ w indow manufacturer’ in th eir
construction set b oards.

In return K ungsfönster sh ould provide th ese partners w ith packages including; preferential prices
and pay ment flex ib ility .

H o w to a c hi ev e i t? As K ungsfönster is in need for a partner, th ese companies h ave also th e same

motives and th ey w ouldn’t refuse a strategic alliance as far as th e partnersh ip terms makes sense to
th em and th e outcome is relevant to w h at th ey ex pect. N eg o ti a ti o n is th e key . It takes an ex perience
salesperson and good negotiator to make it w ork, and K ungsfönster already h as th is potential.

11.2 D i s i n ter m ed i a ti o n : D o n ’ t k i l l the m i d d l em a n

Based on our understanding of K ungsfönster’ b usiness h ab its, as ex h ib ited in th is paper, w e noticed

th at K ungsfönster approach es th e b usiness clients th en th ese b usinesses approach es final
consumers:

Kungsfönster Business Clients House owners

We r ec o m m en d K o n g s f o n s ter to create a direct ch annel th rough w h ich our client w ill b e

approach ing directly th e final consumer. We are suggesting a disintermediation w h ile keeping th e
original b usiness flow going:

29
 Kungsfönster Business Clients House owners

For ach ieving th e suggested strategy , w e recommend th e use of Internet as b eing th e most
convenient tool and th e most affordab le one.

K ungsfönster already h ave online presence, h ow ever th e w eb site h asn’t b een updated for a long
period w h ich makes th e visitor take it as an unreliab le source of information. Th e fact th at it w as
mainly oriented tow ards b usiness clients made it q uite tech nical for us to grasp. Th e Internet
presence sh ould b e enh anced w ith a stronger and more dy namic w eb site w ith tw o sections; one
designed for professionals w ith a stress on tech nicalities and a second tailored for h ouse ow ners
w h ere aesth etic, design and functionality are portray ed.

Th ough K ungsfönster h as a great sense of focus and w ould like to concentrate on its domestic
market sh are, Atlantis w ould like to encourage an E nglish version of th e w eb site accessib le th rough
th e original site. With all th ese sh akiness going on in th e market w orldw ide, it w ould b e w iser for
K ungsfönster as a small b usinesses, mainly th e small ones, to b e proactive and ready for any
unsuspected opportunity .

E ven th ough w e understand K ungsfönster’s conservativeness regarding ‘ online b usiness’, w e h eavily

suggest a creation of an IT department, w ith at least one person h andeling th e w eb page

11.3 L es s en the b u r d en : M o r e s a l es p eo p l e

We truly b elieve th at an ex perienced salesperson is a great asset for any company . How ever no
matter h ow great and ex ceptional th e salesperson is, w h en h e or sh e is under a h eavy b urden, th e
productivity w ill sooner or later drop off.

Because w e know th at lab or cost a lot and may not b e affordab le for small companies, w e
recommend K ungfonster to recruit from sales, marketing & communication students; as part timers
or for predetermined contracts, w h ich w ill cost th e company a w ay less th an if th ey are to get
ex perienced h uman resources.

Th is j unior sales force sh ould b e trained b y th e senior salesman in K ungsfönster and prepared to
represent th e company . Many w ill b e enth usiastic to offer th eir services as a first w ork ex perience
and a test for th eir learned skills. To cut th e cost furth ermore, mainly th e travel one, w e are
suggesting th at th ese salespeople sh ould b e recruited from th e geograph ical areas w h ere th ey are
supposed to serve.

30
11.4 G r a ti s : g i v e i t a w a y

N o matter w h om w e are or w h at w e h ave, w e love to get th ings for free. E ith er it is a pen, a gum, or
a key h older, some of us w ill use th em oth ers w ill collect th em and many w ill mention th em to th eir
friends. Putting th e name and th e logo of K ungsfönster on th ese novelties w ill give a resonance to
th e company .

11.5 I f y o u d o n ’ t g o to them , they w o n ’ t c o m e to y o u

Sometimes th ere is no need for complex tactics to reach th e target market. Old marketing strategies
such as sh ow s and ex h ib itions may eq ually h elp rising th e b rand aw areness and reinforcing th e
position in th e market. Th e visual memory h as th e ab ility to retain faster and associate information
w ith images (G leitman, 1991). By taking part of th eses ex h ib itions y ou are not talking ab out w h at
y ou can do, y ou are giving proof of it. It’s also a great opportunity to meet w ith oth er actors in th e
industry , approach th em and look for match ing alliances. We suggest K ungsfönster to h ave at least
one annual participation, eith er regional; E lmia Fastigh et for ex ample or on a larger scale;
N O R D B Y G G for instance.

If pub liciz ed w ell in th e company ’s w eb site and th rough th e partners, th ese gath ering w ill b e
attracting h ouse ow ners as w ell, h itting tw o b irds w ith one stone.

31
 1 2 - Actio n P l an
12.1 OB J E CTI V E

Strength en K ungsfönster position and enlarging its market sh are.

12.2 D R I V I N G F OR CE S

- Th e ROT allow ance

- Lucrative Market

- Th e flex ib ility of th e small b usiness

- Potential for developing competitive advantages

12.3 R E STR A I N I N G F OR CE S

- Dependence on b usiness clients

- Resistance of ch ange

- N on-deploy ment of promotional effort

12.4 A CTI ON P L A N IN G

WH O WI L L D O WH A T B Y WH E N H OW M U CH

Web developer Developing a more convenient An urgent priority . Alternative 1: 5990 SE K

w eb site (w ith tw o portals; for Th e sooner th e b etter /first entire y ear
professionals (tech nical) & for
h ouse ow ners(aesth etic and Alternative 2: 10 960 SE K /
functional) + an E nglish w eb site first entire y ear

Alternatuve 3: 15620
SE K / first entire y ear

(see ex planation at th e
b ottom)

Top Look for alliances & partnersh ips Th e sooner th e search Depending on th e
management + starts th e b etter it is. agreement terms
marketing
department

32
Human resource Recruiting j unior sales people By summer 20 0 9 Can b e optimiz ed (see
department (Students) ex planation at b ottom)

Senior sales Training th e sales people By fall 20 0 9 Can b e optimiz ed (see

person (Tore) ex planation at b ottom)

12 .5 E X P L A N A TI ON
- Oth er measures such as ex h ib itions and novelties can b e carried on as th e action plan advances.
Y et h ere is an insigh t on h ow much it w ould cost K ungsfönster to sub scrib e for E l m i a F a s ti g het:

Rental of th e stand area SE K 1 495/sq m

Th e registration fee is SE K 3 950 per ex h ib itor and includes: an entry in th e fair catalogue, ex h ib itor
cards and invitation cards.

F o r t h e w e b s i t e : Th e w eb site w ill b e provided w ith an update tool w h ich makes it easy for company
representatives to update th e w eb site from any computer at any time. Th e w eb site provider also
offers training for th eir customers in e.g. h ow to use th e update tool and suggestions on h ow to
attract more visitors to th e w eb site (Smelink, 20 0 9).

- The f i r s t A l ter n a ti v e i n c l u d es : Web site 10 pages, including: Web h osting, Design, Tex ts,
Domain, Pictures, E -mail, Update tool, Free Support & Search E ngine Optimiz ation (Smelink,
20 0 9).

- The s ec o n d A l ter n a ti v e i n c l u d es : Web site 10 pages, including: Web h osting, Design, Tex ts,
Domain, Pictures, E -mail, Update tool, Free Support & Search E ngine Optimiz ation E x tra
functions: Statistics, Product catalogue, Logoty pe & Art G allery (Smelink, 20 0 9).

- The thi r d A l ter n a ti v e i n c l u d es : Web site 10 pages, Including: Web h osting, Design, Tex ts,
Domain, Pictures, E -mail, Update tool, Free Support & Search E ngine Optimiz ation. E x tra
functions: G uest b ook, Statistics, Art G allery , N ew s function, Log in, Logoty pe, Search function, &
Product catalogue(Smelink, 20 0 9).

For th e sales force recruitment: According to th e civilE konomerna, a new ly graduated student of
20 0 7 is entitled to 25.0 0 0 SE K . By recruiting part time students K ungsfönster w ill b e cutting dow n
th e cost giving itself more flex ib ility in deciding w h at it w ould b e reasonab le to pay . A commission
b ased salary is also recommended to enh ance productivity and evaluate th e strategy ’s outcome.

Th e cost of th e training is also very open to optimiz ation, depending on th e nature of th e training
(field w ork, w orksh ops), w h ere it w ill b e h eld and h ow many people it involves.

33
13- Co n cl us io n

Th is paper h umb ly summariz es our serious effort to ligh t a torch on K ungsfönster q uality j ourney . It
w as also an immense opening for us, as master students, to test our research , analy tical and
communication skills.

Being part of an international team w h ere five different cultures and four continents are represented
made th is ex perience eq ually educational on th e h uman level.

As w e are concluding th is research w e truly w ish K ungsfönster prosperity and success, and w e w ill
b e h onored if our recommended solutions, eith er some or all of th em, h elped concretiz ing w h at w e
are all h oping for th is striving company .

To our tutors th anks, for th is ex perience.

34
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36