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  • 1.
    Burton, Alexander
    et al.
    Linköping University, Department of Management and Engineering.
    Sjöholm, John
    Linköping University, Department of Management and Engineering.
    Tillväxtkrafter i IT-företag: - En benchmarkingstudie kring krafter som har påverkat en framgångsrik tillväxt2010Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
    Abstract [en]

    Medius AB is a Swedish player in the IT market with business in the workflow, ERP and Consulting areas. The company has experienced a strong growth, and with its own product, MediusFlow™, in the electronic invoice handling area have gained a unique position in the market. Medius AB intends to continue this growth to achieve a target of 500 million in revenue in year 2012.

    This thesis is a study of growth in a rapidly changing IT market. The Swedish IT market is a relatively mature market and many players are looking abroad to find new lucrative markets. Historically, many companies have grown exponentially, then experienced an equally sharp decline, and have been very sensitive to economic fluctuations. Consequently, the purpose of this study is to identify critical forces for a rapid and stable growth in the IT market by examining Swedish companies, which have already achieved this growth. The focus is on how these companies have acted within the marketplace. Internal forces such as the organization's structure will therefore not be investigated. The study will culminate in recommendations for Medius AB to achieve continued strong growth in the IT market. To explore other players' growth, a benchmarking study was carried out with ten carefully selected companies. This was done through interviews onsite at each company in which they were given a chance to talk about how they had acted, on market terms, in order to achieve growth. Before the interviews began a hypothesis, based on the forces affecting growth from the feasibility study and the theoretical framework, was developed.

    After the completion of the interviews, each company has been individually analyzed in a case study analysis to identify the most significant forces, after which a cluster analysis has been carried out to search for and identify any natural clusters among these companies. In this analysis, we found three clusters ranked according to the forces that had the greatest impact on growth. Although there are differences between the clusters, they are also in many ways similar in regards to growth.

    We have found that for successful growth, companies must be flexible to customers, not only in customized solutions but also in proximity to the customer. The growth must have clear strategies and it is extremely important not to divert from core competencies by acquiring or expanding outside this framework. In addition, relationships with customers and partners have proved to be extremely important. Being able to retain customer loyalty in the long term through a close relationship leads to good opportunities for continued sales to them. Common to the clusters, we have seen that some of the forces have had considerable impact on growth. These forces are Flexibility, Growth Direction, Distribution Knowledge and Customer Focus Strength.

    Our recommendations are based on the conclusion of the findings of the study and have been targeted to securing the continued growth of Medius AB. Medius AB should primarily focus on creating personal relationships with customers and then maintaining them to increase sales to these existing customers. Furthermore, Medius AB should continue its expansion with clear strategies and not deviate from its core areas of focus when considering potential acquisitions.

    Finally, Medius AB should also take active steps to penetrate new marketing channels in social media to increase exposure of the company to existing and potential customers and also competent persons seeking employment.

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