Strategic turnaround in a fragmented industry

This study examines the range of business strategies chosen among small and medium‐sized enterprises (SMEs) in their adaptation to increased market integration and higher competitive intensity. Longitudinal studies of SMEs in the Norwegian agro‐food industry show the effect of market fragmentation at strategic change capability. Analyses of strategy gives indication of high historic reliance on political sub‐strategies, and a lot of smaller firms being satisfied with the present more incremental adaptation pattern and a non‐profiled strategic posture. Some firms are, however, gaining advantage through efforts towards more distinct strategic positioning, combining market positioning tools and supporting resources such as competence, network resource accumulation. Implications for the future competitiveness in view of the market integration processes are reviewed. Suggested policy measures for the government to improve global competitiveness in transitional industries are outlined.