This thesis presents the entire lifespan of two major record companies in Finland, starting from their creation and ending with their present situation. In this research the strategic evolution of these companies is analyzed through the lens of the strategy logic perspective. In doing so, this thesis takes a qualitative look at the development of strategy in two individual companies. In addition, the study aims to reveal the main issues the strategists of these companies have faced over the decades and the key principles that have steered their companies through successes as well as certain failures.

This thesis seeks answers to the following research questions.

What were the strategy logics of Fazer Music and Poko Rekords in the days when the companies were founded?

How have the strategy logics of these companies changed during their existence? Have there been any radical turning points or have the changes been incremental? What were the similarities and differences in the evolutionary paths of the two companies?

What were the reasons behind the changes in strategy logics? Were the changes deliberate or did they just somehow come about?

The analysis shows how the strategy logics of Fazer Music and Poko Rekords evolved as the companies transformed themselves from their humble beginnings into serious players in the Finnish music industry. Both companies had a similar evolutionary path where they eventually outgrew their own capabilities and ended up divesting their operations. Similarly both companies also became a part of multinational conglomerates, even though these two acquisitions had very dissimilar results.

From a theoretical perspective this thesis demonstrates that the number of essential elements in a certain strategy logic is not the key factor that determines its successfulness. On the other hand, this thesis also points out that any strategy logic inevitably changes gradually or more rapidly. Furthermore, even small changes in the essential elements of a strategy logic may bring about significant changes in the actual operations of a company. In addition, this thesis further indicates that in order to succeed a company should focus both on doing the right things as well as doing things right. Finally, the thesis demonstrates that successful strategies can be created either through a comprehensive analytical process or simply based on personal vision. Neither of these paths is fundamentally wrong, but their functionality should be evaluated on the basis of the characteristics of the organization in question.

Asiasanat:strategy, strategy logic, mental models, record industry