Abstract
In 1997, VSM AB became an independent company and had been bought by an investment fund Industri Kapital. This report analyzes the strategic impact of these events in a global competition and declining market background. In order to understand the VSM case, we have analyzed the new strategic capabilities acquired after the appointment of Mr Runnquist. Then we have focused on the strategic choices of the new CEO. Finally we have studied how VSM Group was organized for success. In addition to the three points, we have also drawn the PEST and the Five Forces models. Since VSM AB has been sold to Industri Kapital, Mr Runnquist changed the strategy of VSM AB completely. The first thing to do was to choose the strategic capability. Mr Runnquist developed new activities and processes through which unique resources were deployed in such a way as to achieve competitive advantage.
