Rieck and Dickson define engineering scheme as the manner companies might utilize engineering to derive competitory advantage in the market. They believe that in order to developing a proper engineering scheme model a company should be able to supply replies to the undermentioned inquiries:
What are the features of market and where is the current place of the company in the market?
What is the state of affairs of other participants of the market?
Where does the company want to make in comparing with other participants in the market?
Which manner is the best one to make that point?
And how can the company move in this manner most expeditiously and efficaciously?
This study has tried to analyse the state of affairs of a new Finnish start-up, Neapo Oy, and its competitory engineering, Fixcel, in the Finnish modular edifice building industry. Furthermore, it has been tried to supply appropriate reply to the first three inquiries of above through utilizing different analytical methods in the study. The 2nd chapter has tried to supply an overview about the company and its new engineering. The general state of affairs of modular building industry and market has been studied in the 3rd chapter. The 4th chapter indicates and analyzes value web of Neapo every bit good as features of its Fixcel engineering as a riotous engineering in the market. Finally, the 5th chapter analyses Neapo ‘s concern ecosystem and investigates current and future constrictions of the ecosystem. To shut the study, decision and treatment chapter, based on old analysis, provides answer to the staying inquiries of the above set.
Table 1. shows the concluding recommended engineering scheme theoretical account of Neapo Oy based on the templet provided with Rieck and Dickson ( 1993 ) :
Table. Technology scheme theoretical account of Neapo Oy
( old ages )
Bing the market leader in Finnish modular constructing building market, spread outing market portion to normal constructing building market, spread outing activities to Nordic Region and Russia through strategic confederations
Change in market toward pre-fabricated edifices, visual aspect of new engineerings, Neapo ‘s focal point on R & A ; D
Technology leader in the niche market, determining market through doing consciousness of Fixcel advantages
Customize engineering to be appropriate for using in pre-fabricated edifices
Pull offing Technology
Using nucleus panel engineering borrowed from ship-building in the building sector
Background and Historical Analysis
Neapo Oy is a Finnish company that provides advanced steel building merchandises for new edifices and fix undertakings to better cost-efficiency and cut down the sum of work on edifice sites. Indoor production in a prohibitionist and warm environment, alternatively of snowy and cold environment of Finland, ensures the high quality and preciseness of the merchandises. Among the solutions offered by the company is one for industrial building of flat edifices, where faculties consisting full flats are transported to the site and installed as a prison guard bringing, and another where lifts are retrofitted to edifices as separate tower elements ( Neapo OyA© , 2012 ) .
The Company was established in April of 2007 under the class of “ metal forming machinery fabrication ” ( Taloussanomat, 2012 ) . Neapo ‘s roots are in the ship edifice industry where they have decennaries of experience in modular edifice and steel constructions. They utilize this experience in their merchandises and solutions and convey it to the building industry.
Ahlstrom Capital Oy, SBA Service Oy, Halton Group Oy, and Sitra are three major stockholders of the company, and each of them have a member in the board of managers ( Neapo OyA© , 2012 ) . Figure 1. shows the combination of Neapo ‘s stockholders.
Figure. Neapo ‘s Shareholders ( Neapo OyA© , 2012 )
NEAPO offers high-quality economical executions that support high-toned architecture in the building industry. Furthermore, NEAPO enables the industrial discovery of building by uniting new coevals metal nucleus panel engineering and the tried modular building methods used in the ship building industry. The company ‘s primary market country is multi-storey residential edifices in Finland ( Neapo OyA© , 2012 ) .
Analyzing fiscal state of affairs of Neapo during last five old ages of its being in the market shows a dramatic addition in its turnover ( see figure 2. ) .
Figure. Neapo ‘s Turnover ( 1000 Euro ) ( Finder Yritystieto, 2012 )
On the other manus, even though Neapo has non reached its BEP, its operating net income growing during last five old ages shows assuring successes in the hereafter ( see figure 3. ) .
Figure. Operating Net income ( 1000 Euro ) ( Bloomberg Businessweek, 2012 )
Sing the above mentioned facts and looking back to Little ‘s ( 1981 ) classification of types of engineering scheme, Neapo can be categorized as Niche participant in Finnish market. The ground of this classification is that even though the company has brought an advanced thought of utilizing new stuffs in edifice modular edifices, it is merely active in the sector of modular building industry which has a really little portion in comparing with the whole edifice building industry in Finland. Before Neapo ‘s entryway to modular edifice building industry, the engineering of stuffs which were used in edifice such constructions had reached an about level public presentation growing, while Neapo provided the market with an advanced stuff to be used in the industry. In fact Neapo company was the first entrant to the niche market of modular edifice building with presenting its new FIXCEL engineering.
Figure 4. shows different types of engineering schemes harmonizing to Little ( Little, 1981 ) , every bit good as Neapo ‘s scheme as Niche participant.
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Figure. Types of Technology Strategy ( Little, 1981 )
Originally developed for usage in ship building, NEAPO ‘s advanced FIXCELA® steel nucleus panel engineering offers exceeding rigidness combined with really low nominal weight and many other benefits for modular building on land ( Vuola, 2011 ) . Production is based on triple-seam turn overing to fall in hot-galvanized steel profiles and organize supporting, corrosion-resistant constructions that are ideal for low-energy edifices ( see figure 5. ) . NEAPO ‘s prefabrication procedure minimises choice fluctuations, costs, wastage, and environmental impact. Fire and temblor opposition are besides of a really high criterion ( Neapo OyA© , 2012 ) .
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Figure. Fixcel nucleus panels
The fact that the stuff used is 100 % -recyclable makes FIXCEL a really environmentally friendly solution. Third-party computations indicate that the life rhythm energy ingestion of FIXCEL stuff is about 40 % less than that of typical building stuffs, while CO2 emanations are some 60 % lower ( Neapo OyA© , 2012 ) .
FIXCEL constructions are custom-designed for each application and have been used to bring forth wholly prefabricated lift shafts, extra top floors for bing edifices, modular multi-storey edifices, and drifting edifices, for illustration. By pre-installing autos and machinery, lift shafts can be erected on site in merely a twenty-four hours, with lifts operational within a few yearss – which must be something of a universe record. Figure 6. shows the get downing stairss of constructing a modular flat utilizing Fixcel engineering in the workshop.
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Figure. Get downing stairss of constructing a modular flat utilizing FIXCEL
In add-on to the easiness of installing FIXCELA® engineering offers these types of applications, it besides helps better the energy efficiency of bing constructions.
Thankss to their supporting capablenesss, FIXCELA® faculties can be used to construct full edifices, with external and internal surfaces, fixtures and adjustments, plumbing and electrical wiring, and illuming all finished and installed at the works prior to bringing to the site – vouching a high quality of finish and really fast hard-on times and first-class flexibleness ( Vuola, 2011 ) . Figure 7. illustrates concluding stairss of constructing a modular flat utilizing fixcel engineering in the workshop.
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Figure. Concluding stairss of constructing a modular flat utilizing FIXCEL
Furthermore, FIXCEL metal nucleus panel provides a functional construction for buildings that require both horizontal and perpendicular rigidness. It is manufactured utilizing ternary seam turn overing engineering to fall in metal profiles together, therefore organizing a burden bearing construction in the needed breadth and length ( Vuola, 2011 ) . Table 2. compares traditional method with fixcel method in constructing cabin faculties.
Table. Traditional method vs. Fixcel method in constructing cabin faculties
Cabin faculties are without floor
Floor is included
Large portion of public-service corporation systems like HVAC, electrical to be built onboard
Self-supporting, no demand for structural steel
Much integrating and completing work to be done onboard
Up to 70 % less work onboard
Up to 50 % lighter construction
Elaborate structural fire protection
Each panel forms a fire divider
Not functionally ready before installing
The faculty is functionally ready when it leaves the mill
The FIXCEL metal nucleus panels can be made non merely of hot-galvanized steel, but besides unstained steel, C steel, Cu, aluminium or Marine aluminium ( Neapo OyA© , 2012 ) .
Applications include, among others, modular multi-storey houses, drifting edifices, lift shafts, ship building and pontoons. The metal panels are custom designed to the demands of each application, including the necessary computations.
Neapo has already patented its engineering in the United States ( Kordelin, 2006 ) , Australia ( Kordelin, 2010 ) , and European Union ( Kordelin, 2005 ) .
Industry and Market Analysis
Modular Construction Industry
Harmonizing to MBI ( Modular Building Institute ) ( 2009 ) , Modular edifices and modular places are sectional prefabricated edifices, or houses, that consist of multiple subdivisions called faculties. Using a Crane, the faculties are set onto the edifice ‘s foundation and joined together to do a individual residential, or commercial, edifice. The faculties can be placed side-by-side, end-to-end, or stacked up to six narratives in tallness, leting a broad assortment of constellations and manners in the edifice layout.
Modular edifices may be used for long-run, impermanent or lasting installations, such as building cantonments, schools and schoolrooms, civilian and military lodging, and industrial installations. Modular edifices are used in distant and rural countries where conventional building may non be sensible or possible, every bit good as the topographic points in which weather status does non let the uninterrupted building activities. Other utilizations have included churches, wellness attention installations, gross revenues and retail offices, fast nutrient eating houses and cruise ship building ( Modular Building Institute, 2009 ) .
Faculties ‘ building may take every bit small as 10 yearss but more frequently one to three months. Completed faculties are transported to the edifice site and assembled by a Crane. Placement of the faculties may take from several hours to several yearss. Figure 8. depicts the clip difference of modular building agenda and site built building agenda. Once assembled, modular edifices are basically identical from typical site-built constructions. While nomadic manufactured edifices frequently decrease in value over clip, a well-built modular edifice should retain value likewise to site-built constructions.
Permits & A ;
Site Development & A ;
Install & A ; Site Restoration
Constructing Construction at Plant
Permits & A ;
Site Development & A ;
Modular Construction Agenda
Site Built Construction Agenda
Figure. Time advantage of modular edifice building method
Modular edifices are frequently priced lower than their site-built opposite numbers, for a assortment of grounds ( Hardy, 2004 ) . Manufacturers cite the undermentioned grounds for the typically lower cost/price of these homes:
Speed of construction/faster return on investing
Favorable pricing from providers
Ability to serve distant locations
Environmentally friendly building procedure
On the other manus, while there are many advantages to all signifiers of modular edifices, there can be restrictions besides. Transporting the completed modular edifice subdivisions take up a batch of infinite. This is balanced with the velocity of building one time arrived on site. Besides, due to transport and sometimes fabrication limitations, module size can be limited, impacting room sizes. Panelised signifiers and level battalion versions can supply easier cargo, and most makers have flexibleness in their procedures to get by with the bulk of size demands.
Harmonizing to makers, modular places are designed to be stronger than traditional places by, for illustration, replacing nails with prison guards and adding gum to articulations. This is supposed to assist the faculties maintain their structural unity as they are transported on trucks to the building site. However, it is hard to foretell the concluding edifice strength since the faculties need to digest transit emphasiss that traditional places ne’er experience ( Modular Building Institute, 2009 ) . For case, harmonizing to FEMA ( 1992 ) surveies of the devastation wrought by Hurricane Andrew in Dade County Florida, they concluded that modular and masonry places fared best compared to other building.
Modular edifices can be assembled on top of multiple foundation surfaces, such as a crawl infinite, piles ( for countries that are prone to deluging ) , full cellars or standard slab at class. They can besides be built to multi-story highs. Motels and other multi-family constructions have been built utilizing modular building techniques. The tallness to which a modular construction can be built depends on legal power, but a figure of states, particularly in Asia, let them to be built to 24 floors or more. Figure 9. shows the installing procedure of a modular flat composite.
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Figure. Installation of a modular flat composite
Modular Construction Market
Taking a expression back to the modular building market, it shows that some place purchasers and some loaning establishments resist consideration of modular places as equivalent in value to site-built places. While the places themselves may be of tantamount quality, entrenched districting ordinances and psychological market place factors may make hurdlings for purchasers or builders of modular places and should be considered as portion of the decision-making procedure when researching this type of place as a life and/or investing option. In the UK and Australia, modular places have become accepted in some regional countries ; nevertheless, they are non normally built in major metropoliss ( Modular Building Institute, 2009 ) .
Permanent modular edifices can be utilized in any application where stick-built building is used. The primary markets served are K-12 instruction, higher instruction pupil lodging, office and administrative infinite, retail and cordial reception, health care, and publically funded installations ( Modular Building Institute, 2011 ) . Figure 10. illustrates different market sections of international market which are served by modular building.
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Figure. International market presently served by commercial modular building ( Modular Building Institute, 2011 )
In Finland, due to exceptional conditions conditions, modular building has ever been in the centre of attending of contractors. The chief application of modular building, nevertheless, has been in edifice and put ining new balconies, lift shafts, and over facings while whole edifice building has been less attractive ( due to transit jobs ) . Figure 11. shows the application of modular building in edifice and put ining station attached balconies and over-claddings on a edifice in Finland.
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Figure. New balconies and over-claddings station attached utilizing modular building – Suomi
Although more than 50 domestic and foreign companies are active in the modular building industry in Finland, merely around 20 per centum of them are active in whole edifice building. The chief participants of the market are as below:
Unfortunately, writer ‘s research could non take to deriving appropriate fiscal information in respect with the modular building industry in Finland, although through doing a comparing between Neapo ‘s turnover ( see figure 2. ) and entire turnover of constructing building industry in Finland ( Statistics Finland, 2012 ) , it can be found out that Neapo, thanks to its Fixcel engineering, is ruling the market ( see figure 12. ) .
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Figure. Neapo ‘s portion of constructing building in Finland
The last issue which is deserving adverting is that although modular constructing building industry histories for a well little sector in Finnish constructing building market, Neapo ‘s accomplishments, every bit good as technological development in modular building industry, in the long-run can endanger the chief edifice building industry. Hence, in the long-run, the chief edifice contractors besides can be taken into history as indirect possible rival.
Analysis Using Models
Suarez and Lanzolla ( 2005 ) studied the consequence of market and technological alteration on the strategic behaviour of a engineering in the industry. Sing Fixcel engineering, Finnish market and faculty edifice building industry, it can be found out that Neapo Oy, thanks to its elephantine stockholders, has already invested to a great extent on presenting the Fixcel as an advanced engineering to the market. On the other manus, by come ining to the market, Neapo has been the beginning of important technological alterations non merely in bring forthing wall, roof, and floor stuffs, but besides in complement engineerings ( e.g. internal and external coating activities ) . Furthermore, analyzing Neapo ‘s negative ( but positively turning ) operating net income during last five old ages shows the assurance of the company and its stockholders in puting in Fixcel engineering. However, taking a expression at modular building market, it can be easy happen out that the market is a really little section ( niche market ) in comparing with whole constructing building market in Finland. Sing the abovementioned facts, it can be concluded that Neapo Oy can be categorized as a “ Technology Lead ” in Suarez and Lorenzo ‘s theoretical account. In fact the company tried to force the engineering to the market to do a new consciousness in respect with a demand ( or advantage ) which was non clear for the either costumiers or contractors before. Figure 13. shows the strategic classification of Fixcel engineering in modular edifice building industry as a “ Technology Lead ” .
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Figure. The combined effects of market and technological alteration ( Suarez & A ; Lanzolla, 2005 )
Furthermore, as mentioned before, clients and contractors were non cognizant of the demand ( and possibility ) of such a engineering alteration. In fact it was a instance of “ unexpected success invention ” ( Drucker, 2006 ) which was foremost innovated to be used in the transportation industry. Thankss to acquaintance of Neapo ‘s chief start-up nucleus, the advantages of the strucure as a visible radiation and tenseness and fire immune construction were by the way found out to be the demands in modular edifice building industry. Actually one of the grounds that at the get downing the company started to put on building undertakings and maintain the engineering in house was the nature of their invention and company ‘s demand to do the demand in the market. All in all, aformenteiond analysis shows that Neapo ‘s orientation in the market can be categorized as “ market maker ” harmonizing to Benhon, et Al ( 1999 ) . Figure 14. shows current Neapo ‘s strategic orientation toward modular edifice building industry in Finland.
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Figure. Strategic orientations toward client and invention ( Benhon, et al. , 1999 )
In fact, sing the “ Technology Leader ” function of Neapo, it wholly makes sense that the orientation of the company should be to determine the market and push engineering awareness toward module building industry.
Value Network and Disruptive Change Analysis
Value Network Analysis
Allee ( 2000 ) believes that companies can make value for their clients in three signifiers of goods and services, cognition, and intangible benefits. In analysing Neapo ‘s value web in modular edifice building industry, we can both see forward and backward values. It other words, we can analyse the value that each of participants in value web provide for the following ring in the value concatenation every bit good as the value that they provide for the old ring. Here we have divided value Godheads in the market to eight chief classs of 1 ) Neapo Oy, 2 ) Neapo ‘s providers, 3 ) ordinances, 4 ) patentes, 5 ) Internal and external coating companies, 6 ) transit companies ( those companies which take attention of transporting prepared flat to the chief site ) , 7 ) contractors ( those companies for which Neapo Oy play the function of provider ) , and 8 ) concluding clients. In order to avoid ambiguity, here in this analysis we chiefly concentrate on values that Neapo provides for its contractors and costumiers, while other values in the web will be discussed briefly.
Internal/external Finishing ( shocking, bathrooms, frontage, aˆ¦ )
Transportation system Companies
Valuess to Contractors:
– Merchandise Quality
– Lower Monetary value
– Weight Advantage
Valuess to Customers:
– Lower Monetary value
– Time Advantage
– High Energy Efficiency
Figure. Neapo ‘s value web in modular edifice building industry
In Neapo ‘s value concatenation regulators add value in the signifier of services by supplying the company with review services and enfranchisements. Besides, patents provide the company with expected demands in the signifier of cognition. Internal and external coating companies add value to concluding merchandise by supplying goods, services, and proper gross ( pecuniary advantage ) in the signifier of quality of goods and services. On the other manus, transit companies besides add value to concluding merchandise by conveying clip advantage aboard with abovementioned values for completing companies.
In respect with values provided by Neapo, the company provides its contactors and concluding clients with the following benefits:
High perpendicular burden bearing capacity
Energy Efficient and hermetically sealed
Good sound insularity
100 % reclaimable
Lower monetary value
As it can be seen, and it could be expected, all of the values that Neapo delivers to its contractors and concluding clients are based on its engineering advantage. These values can be categorized to quality, lower monetary value, and weight advantage for contractors, and safety, lower Price, clip Advantage, and lastingness for clients.
Disruptive Change Analysis
Christensen ( 1997 ) separates new engineering into two classs: sustaining and disruptive. Prolonging engineering relies on incremental betterments to an already established engineering, while Disruptive engineering lacks polish, frequently has public presentation jobs because it is new, entreaties to a limited audience, and may non yet have a proved practical application.
Christensen ( 1997 ) points out that big corporations are designed to work with prolonging engineerings. They excel at cognizing their market, remaining near to their clients, and holding a mechanism in topographic point to develop bing engineering. Conversely, they have problem capitalising on the possible efficiencies, cost-savings, or new selling chances created by low-margin riotous engineerings.
A riotous alteration normally happens when the old engineering get discontinued. Harmonizing to Tushman and Anderson ( 1986 ) a engineering discontinuity either creates a new developed engineering or replacements for an bing engineering. Looking back to modular edifice building industry, it can be found out that engineering development of the stuffs which were used in constructing modular constructions had reached the maximal possible public presentation. From one side, utilizing normal stuffs, which are used in edifice building, such as concrete and steel would notably increase the weight of the concluding construction. On the other side, utilizing low-weight stuffs, such as forests and plastics, could cut down the lastingness and safety of the concluding merchandise. Besides even new hi-tech betterments in nanotechnology and C fibre development could non assist the job since one of the most of import competitory advantages of modular building was straight related to clip nest eggs. This technological discontinuity was followed by lunching Fixcel engineering to the modular edifice building industry in 2007. Figure 16. depiccts engineering life-cycles of traditional ( current ) stuffs used in modular edifice and outgrowth of Fixcel as a new engineering in the industry after a technological discontinuity.
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Figure. Discontiniuity of traditional stuffs used in modular building, followed by lunching new Fixcel engineering
Despite the fact that a similar engineering was presently used is the ship edifice industry, Fixcel can non be considered as an old engineering or a sustainable one since foremost, new features which are brought by Fixcel engineering to the modular edifices ( see subdivision 4.1 ) have already started to go the footing of a ferocious competition in the modular edifice industry. Second, Fixcel engineering is possible to pull other market sections of whole edifice building industry, due to its typical properties. On the other manus, Fixcel provides a definite replacement ( and non a complement ) for traditional stuffs used to do walls, roofs, and floors.
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Figure. Fixcel Technology low-end break
So far the current state of affairs of Fixcel engineering as a riotous invention has been analyzed. In order to hold a better expression to the engineering scheme of the company in respect with engineering break in the hereafter, the study is traveling to take advantage of Dedehayir theoretical account ( 2012 ) with regard to finding schemes for future engineering breaks.
Sing the initial province of functional relatedness, there is no uncertainty that Fixcel engineering is functionally similar to current stuffs used for doing modular cabins. On the other manus, it plays and alone function in complete permutation with current stuffs and does non move as a complement to them. Furthermore, sing the hereafter province of functional relatedness, it seems that the engineering can bit by bit happen its manner to the chief edifice building market to play the same function ( Substitute ) in a bigger market section. There is no uncertainty that in instance of such an enlargement, the competition will go tougher in the market. Pulling a decision out of put forward inside informations, it could be evidently concluded that Fixcel ‘s future competition form can be categorized as counter competition, based on Dedehayir theoretical account ( 2012 ) . Figure 18. shows the theoretical account every bit good as Fixcel ‘s scheme as counter competition.
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Figure. Schemes for future riotous engineerings
Neapo ‘s Ecosystem
Business ecosystem depicts the full environment in which the company performs. It considers the chief participants of the related market every bit good as their relationship to other members of the environment. In fact it plots a web of companies which collaborate together to make value and present it to the concluding client. In respect with concern ecosystems around Neapo Oy, foremost two different functions of the company should be taken into history. The first function is the provider ; Neapo has late started to function as a provider to some of major modular building contractors based on a strategic confederation. However the company prefers to maintain its fixcel engineering in house. The ulterior function of Neapo has introduced the company as a contractor which serves concluding clients in the market. On the other manus, sing the fact that the chief ( and the merely ) stuff which company needs to provide from other providers is steel saloon, company ‘s chief providers are steel companies. Unfortunately, in malice of tremendous attempts, Neapo ‘s beginnings of steel supply could non be identified. But, it can be guessed that the company provides its needful natural stuff either from Eastern European market or South Eastern Asiatic market ( which does non do any different in our analysis ) . Apart from the chief provider, besides machinery providers should supply the company with their machinery ( less often ) and service ( often ) .
Sing two different functions of Neapo, which was discussed before, in the market, Neapo Oy acts both as provider and contractor for its strategic spouses and concluding clients severally. Besides, the company needs some other services as a complement to its goods and services to present the concluding merchandise to the client. First, a group of companies which take attention of completing activities of doing an flat: These companies take attention of services such as tiling, wiring, picture, edifice facade, etc. Undoubtedly the degree of services provided with this group of companies plays a important function in the concluding delivered value to client. More significantly, logistics contractors, as another complementor of concluding merchandise, play a important function in presenting appropriate value to the concluding clients. Their undertaking is to transport the reinforced construction to the chief site to be installed on the concluding edifice. Figure 19. shows two different stairss of transit procedure of a completed building to the chief site.
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Figure. Two different stairss of transit procedure.
Transportation system companies are one of the chief participants in Neapo ‘s ecosystem since there are merely a few companies with appropriate equipment to be able to execute the transit procedure of such constructions in Finland, and it makes additions their bargaining power against Neapo.
Finally the contractors are those building companies which have strategic confederation with Neapo and are licensed to limitedly utilize Fixcel engineering in their undertakings. Figure 20. gives a better understanding about Neapo ‘s ecosystem.
Rolling Mill Manufacturers
Internal/external Finishing ( shocking, bathrooms, frontage, aˆ¦ )
Transportation system Companies
Figure. Neapo ‘s ecosystem.
Sing the fact that Neapo has started its activity since 2007 as a technological start-up and has non had any old merchandises or engineerings, it would be somewhat hard to analyse the alteration form of its values during few last old ages. The same regulation applies for riotous alteration. Alternatively, possible hereafter impacts on company ‘s values every bit good as engineering can be studied based on available information.
As mentioned before, turning market portion of Neapo seems to assure future incursion to the chief edifice building industry. In fact, Fixcel ( every bit good as its tiered merchandise, modular edifice ) has a great potency to go through its first stairss of consumer acceptance and accomplish a bigger portion from the full edifice building industry. Furthermore, it is possible that in the hereafter the stuff is traveling to be used non merely in modular building, but besides in normal edifice building activities, based on its noteworthy advantages. These alterations can bold the function of transit companies and those companies which are in charge of completing activities. The following subdivision describes the topic a spot more.
Constrictions in Neapo ‘s Ecosystem
Analyzing the Neapo ‘s ecosystem and its possible alterations in the hereafter in can be easy found out that one of the chief constrictions of the system could be transit companies. Due to mammoth size of pre-fabricated flats and their tremendous weight merely a few transit companies are able to supply equipment and installations to execute such transits. This procedure non merely increases their bargaining power as an external force, but merely in few old ages, after accomplishing a bigger market portion, could do serious jobs in footings of programming and undertaking holds.
On the other manus, sing the fact that in an ecosystem all the constituents affect each other, in order to work out the constriction job, we should mention to old ring in the concatenation. So far Neapo has solved the job of heavy concrete walls in modular buildings. The following measure of bettering the quality ( cut downing the weight ) of the concluding merchandise is to present other advanced engineerings to supply lighter stuff for other completing activities such as tiling, bathrooms, lights-outs, etc. it seems that the turning market of Neapa ‘s made modular building can trip other technological start-ups to work out a portion of this job. Besides, one of the possible hereafter alterations in company activates and values could be about concentrating on R & A ; D activities to get the better of technological jobs in this mode.
Discussion and Decision
This study tried to analyse the current competitory state of affairs of a new lunched engineering ( Fixcel ) in modular edifice building in Finnish market. Based on the conducted research Neapa Oy a immature technological start-up which entered modular building market utilizing its advanced engineering, Fixcel, has experiences rapid fiscal and market portion growing during past four old ages. Based on its advanced stuff to be used in modular building, Fixcel from the beginning decided to move the function of niche participant in the edifice building industry. However the company has already gained an incredible market portion ( 3.5 % ) of Finnish constructing building market and its growing tendency is besides assuring farther successes in the hereafter. Due to its advanced attack to the topic and deficiency of market consciousness sing its engineering the company has already put all its attempt on determining the market based on doing the market sensitive to the benefits of Fixcel. Through this method, Neapo is seeking to maintain its engineering leading place in the market and at the same time do the demand for higher quality life infinites ( based on Fixcel engineering ) with lower monetary values in the market through presenting important values ( Safety, lower monetary value, clip advantage, and lastingness ) to its clients.
Looking at Fixcel engineering as a riotous invention in the market, and sing its function in its concern ecosystem, so far the study has been successful to bespeak the market features and Neapo ‘s place in the market. In fact the company has already taken the first stairss of managing and allowing its engineering. Harmonizing to Rieck and Dickson ( 1993 ) the following undertakings Neapo ‘s engineering scheme are Technology Positioning, Industry Forecasting, and Puting Horizons. It seems that the company has already taken great stairss in positioning its engineering in its niche market, although as discussed earlier, harmonizing to noteworthy advantages of its engineering future incursion to different sections of the market can besides be considered in five to ten old ages. On the other manus, looking at Neapo ‘s fiscal figures it seems that the market has hosted their engineering heartily and this promises future alterations in the market. Hence, it would non be out of head for Neapo to see itself the market leader in Finnish modular edifice building industry within 10 old ages. Besides, the menaces of new entrants to the market every bit good as unexpected reactions of other rivals are the facts which should be taken into history. Undoubtedly, new chances in the market will pull other participants ( even those which are active in other building industry sectors ) to the topic. In that instance the menace of tremendous fiscal resources of giants of the market can non be ignored. In order to cut down the hazard of confronting such jobs, and better the state of affairs of current Neapo ‘s ecosystem constrictions, it is recommended that the company put most of its attempt on research and development to accomplish other discovery engineerings in respect with deriving competitory advantage in the long-run and alter its place from niche participant to engineering leader. Besides, the company should besides look into possible methods of using Fixcel engineering in normal edifice building industry. Furthermore, Expanding its services and merchandises ( through strategic partnership ) in Nordic part every bit good as Russia could be another nonsubjective in 10-15 old ages.