Konecranes: Lifting not just ‘Things’, but Entire Businesses, to New Heights
Konecranes is a leading manufacturer of lifting equipment and a market leader in industrial cranes and components. Headquartered in Finland, the group has the world’s most extensive crane service network. North Americas is the group’s best performing territory, accounting for a third of global sales. However, it is increasingly clear that future growth will primarily come from emerging markets elsewhere.
In mid-2012, Pekka Lundmark, president and chief executive officer of Konecranes, makes the radical decision to relocate his office from Finland to Singapore since he believes this will help bring the necessary balance between markets, move the company closer to new opportunities and achieve success. He is determined to continue Konecranes on its journey of pivoting this product- oriented company to one of high-end services. But is this the right approach? What are the implications of such a change in the business model?
This case study is best suited for senior under-graduate; graduate and executive level classes in marketing and strategy courses. It demonstrates entry strategies in Asia Pacific emerging markets, managing strategic growth and also business transformation and adaptation, in this case from a product-oriented company to a service-oriented organisation.
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