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Rieck and Dickson define technology strategy as the way companies might use technology to gain competitive advantage in the market. They believe that in order to developing a proper technology strategy model a company should be able to provide answers to the following questions:
What are the characteristics of market and where is the current position of the company in the market?
What is the situation of other players of the market?
Where does the company want to reach in comparison with other players in the market?
Which way is the best one to reach that point?
And how can the company move in this way most efficiently and effectively?
This report has tried to analyze the situation of a new Finnish start-up, Neapo Oy, and its competitive technology, Fixcel, in the Finnish modular building construction industry. Moreover, it has been tried to provide appropriate answer to the first three questions of above through using different analytical methods in the report. The second chapter has tried to provide an overview about the company and its new technology. The general situation of modular construction industry and market has been studied in the third chapter. The fourth chapter indicates and analyzes value network of Neapo as well as characteristics of its Fixcel technology as a disruptive technology in the market. Finally, the fifth chapter analyses Neapo's business ecosystem and investigates current and future bottlenecks of the ecosystem. To close the report, conclusion and discussion chapter, based on previous analysis, provides answer to the remaining questions of the above set.
Table 1. shows the final recommended technology strategy model of Neapo Oy based on the template provided with Rieck and Dickson (1993):
Table . Technology strategy model of Neapo Oy
Being the market leader in Finnish modular building construction market, expanding market share to normal building construction market, expanding activities to Nordic Region and Russia through strategic alliances
Change in market toward pre-fabricated buildings, appearance of new technologies, Neapo's focus on R&D
Technology leader in the niche market, shaping market through making awareness of Fixcel advantages
Customize technology to be appropriate for applying in pre-fabricated buildings
Applying core panel technology borrowed from ship-building in the construction sector
Background and Historical Analysis
Neapo Oy is a Finnish company that provides innovative steel construction products for new buildings and repair projects to improve cost-efficiency and reduce the amount of work on building sites. Indoor production in a dry and warm environment, instead of snowy and cold environment of Finland, ensures the high quality and precision of the products. Among the solutions offered by the company is one for industrial construction of apartment buildings, where modules comprising entire apartments are transported to the site and installed as a turnkey delivery, and another where elevators are retrofitted to buildings as separate tower elements (Neapo OyÂ©, 2012).
The Company was established in April of 2007 under the category of "metal forming machinery manufacturing" (Taloussanomat, 2012). Neapo's roots are in the ship building industry where they have decades of experience in modular building and steel structures. They utilize this experience in their products and solutions and bring it to the construction industry.
Ahlström Capital Oy, SBA Service Oy, Halton Group Oy, and Sitra are three major shareholders of the company, and each of them have a member in the board of directors (Neapo OyÂ©, 2012). Figure 1. shows the combination of Neapo's shareholders.
Figure . Neapo's Shareholders (Neapo OyÂ©, 2012)
NEAPO offers high-quality economical implementations that support high-class architecture in the construction industry. Furthermore, NEAPO enables the industrial breakthrough of construction by combining new generation metal core panel technology and the tested modular construction methods used in the shipbuilding industry. The company's primary market area is multi-storey residential buildings in Finland (Neapo OyÂ©, 2012).
Studying financial situation of Neapo during last five years of its existence in the market shows a dramatic increase in its turnover (see figure 2.).
Figure . Neapo's Turnover (1000 Euro) (Finder Yritystieto, 2012)
On the other hand, even though Neapo has not reached its BEP, its operating profit growth during last five years shows promising successes in the future (see figure 3.).
Figure . Operating Profit (1000 Euro) (Bloomberg Businessweek, 2012)
Considering the above mentioned facts and looking back to Little's (1981) categorization of types of technology strategy, Neapo can be categorized as Niche player in Finnish market. The reason of this categorization is that even though the company has brought an innovative idea of using new materials in building modular buildings, it is only active in the sector of modular construction industry which has a very small share in comparison with the whole building construction industry in Finland. Before Neapo's entrance to modular building construction industry, the technology of materials which were used in building such structures had reached an almost flat performance growth, while Neapo provided the market with an innovative material to be used in the industry. In fact Neapo company was the first entrant to the niche market of modular building construction with introducing its new FIXCEL technology.
Figure 4. shows different types of technology strategies according to Little (Little, 1981), as well as Neapo's strategy as Niche player.
Figure . Types of Technology Strategy (Little, 1981)
Originally developed for use in shipbuilding, NEAPO's advanced FIXCELÂ® steel core panel technology offers exceptional rigidity combined with very low nominal weight and many other benefits for modular construction on land (Vuola, 2011). Production is based on triple-seam rolling to join hot-galvanized steel profiles and form load-bearing, corrosion-resistant structures that are ideal for low-energy buildings (see figure 5.). NEAPO's prefabrication process minimises quality fluctuations, costs, wastage, and environmental impact. Fire and earthquake resistance are also of a very high standard (Neapo OyÂ©, 2012).
Figure . Fixcel core panels
The fact that the material used is 100%-recyclable makes FIXCEL a very environmentally friendly solution. Third-party calculations indicate that the life cycle energy consumption of FIXCEL material is around 40% less than that of typical construction materials, while CO2 emissions are some 60% lower (Neapo OyÂ©, 2012).
FIXCEL structures are custom-designed for each application and have been used to produce completely prefabricated elevator shafts, additional top floors for existing buildings, modular multi-storey buildings, and floating buildings, for example. By pre-installing cars and machinery, elevator shafts can be erected on site in just a day, with lifts operational within a few days - which must be something of a world record. Figure 6. shows the beginning steps of building a modular apartment using Fixcel technology in the workshop.
Figure . Beginning steps of building a modular apartment using FIXCEL
In addition to the ease of installation FIXCELÂ® technology offers these types of applications, it also helps improve the energy efficiency of existing structures.
Thanks to their load-bearing capabilities, FIXCELÂ® modules can be used to build entire buildings, with external and internal surfaces, fixtures and fittings, plumbing and electrical wiring, and lighting all finished and installed at the plant prior to delivery to the site - guaranteeing a high quality of finish and very fast erection times and excellent flexibility (Vuola, 2011). Figure 7. illustrates final steps of building a modular apartment using fixcel technology in the workshop.
Figure . Final steps of building a modular apartment using FIXCEL
Moreover, FIXCEL metal core panel provides a functional structure for constructions that require both horizontal and vertical rigidity. It is manufactured using triple seam rolling technology to join metal profiles together, thus forming a load bearing structure in the required width and length (Vuola, 2011). Table 2. compares traditional method with fixcel method in building cabin modules.
Table . Traditional method vs. Fixcel method in building cabin modules
Cabin modules are without floor
Floor is included
Big part of utility systems like HVAC, electrical to be built onboard
Self-supporting, no need for structural steel
Much integration and finishing work to be done onboard
Up to 70% less work onboard
Up to 50% lighter structure
Elaborate structural fire protection
Each panel forms a fire partition
Not functionally ready before installation
The module is functionally ready when it leaves the factory
The FIXCEL metal core panels can be made not only of hot-galvanized steel, but also stainless steel, carbon steel, copper, aluminum or marine aluminum (Neapo OyÂ©, 2012).
Applications include, among others, modular multi-storey houses, floating buildings, elevator shafts, shipbuilding and pontoons. The metal panels are custom designed to the requirements of each application, including the necessary calculations.
Neapo has already patented its technology in the United States (Kordelin, 2006), Australia (Kordelin, 2010), and European Union (Kordelin, 2005).
Industry and Market Analysis
Modular Construction Industry
According to MBI (Modular Building Institute) (2009), Modular buildings and modular homes are sectional prefabricated buildings, or houses, that consist of multiple sections called modules. Using a crane, the modules are set onto the building's foundation and joined together to make a single residential, or commercial, building. The modules can be placed side-by-side, end-to-end, or stacked up to six stories in height, allowing a wide variety of configurations and styles in the building layout.
Modular buildings may be used for long-term, temporary or permanent facilities, such as construction camps, schools and classrooms, civilian and military housing, and industrial facilities. Modular buildings are used in remote and rural areas where conventional construction may not be reasonable or possible, as well as the places in which weather condition does not allow the continuous construction activities. Other uses have included churches, health care facilities, sales and retail offices, fast food restaurants and cruise ship construction (Modular Building Institute, 2009).
Modules' construction may take as little as ten days but more often one to three months. Completed modules are transported to the building site and assembled by a crane. Placement of the modules may take from several hours to several days. Figure 8. depicts the time difference of modular construction schedule and site built construction schedule. Once assembled, modular buildings are essentially indistinguishable from typical site-built structures. While mobile manufactured buildings often decrease in value over time, a well-built modular building should retain value similarly to site-built structures.
Site Development &
Install & Site Restoration
Building Construction at Plant
Site Development &
Modular Construction Schedule
Site Built Construction Schedule
Figure . Time advantage of modular building construction method
Modular buildings are often priced lower than their site-built counterparts, for a variety of reasons (Hardy, 2004). Manufacturers cite the following reasons for the typically lower cost/price of these dwellings:
Speed of construction/faster return on investment
Favorable pricing from suppliers
Ability to service remote locations
Environmentally friendly construction process
On the other hand, while there are many advantages to all forms of modular buildings, there can be limitations also. Transporting the completed modular building sections take up a lot of space. This is balanced with the speed of construction once arrived on site. Besides, due to transport and sometimes manufacturing restrictions, module size can be limited, affecting room sizes. Panelised forms and flat pack versions can provide easier shipment, and most manufacturers have flexibility in their processes to cope with the majority of size requirements.
According to manufacturers, modular homes are designed to be stronger than traditional homes by, for example, replacing nails with screws and adding glue to joints. This is supposed to help the modules maintain their structural integrity as they are transported on trucks to the construction site. However, it is difficult to predict the final building strength since the modules need to endure transportation stresses that traditional homes never experience (Modular Building Institute, 2009). For instance, according to FEMA (1992) studies of the destruction wrought by Hurricane Andrew in Dade County Florida, they concluded that modular and masonry homes fared best compared to other construction.
Modular buildings can be assembled on top of multiple foundation surfaces, such as a crawl space, stilts (for areas that are prone to flooding), full basements or standard slab at grade. They can also be built to multi-story heights. Motels and other multi-family structures have been built using modular construction techniques. The height to which a modular structure can be built depends on jurisdiction, but a number of countries, especially in Asia, allow them to be built to 24 floors or more. Figure 9. shows the installation process of a modular apartment complex.
Figure . Installation of a modular apartment complex
Modular Construction Market
Taking a look back to the modular construction market, it shows that some home buyers and some lending institutions resist consideration of modular homes as equivalent in value to site-built homes. While the homes themselves may be of equivalent quality, entrenched zoning regulations and psychological marketplace factors may create hurdles for buyers or builders of modular homes and should be considered as part of the decision-making process when exploring this type of home as a living and/or investment option. In the UK and Australia, modular homes have become accepted in some regional areas; however, they are not commonly built in major cities (Modular Building Institute, 2009).
Permanent modular buildings can be utilized in any application where stick-built construction is used. The primary markets served are K-12 education, higher education student housing, office and administrative space, retail and hospitality, healthcare, and publicly funded facilities (Modular Building Institute, 2011). Figure 10. illustrates different market segments of international market which are served by modular construction.
Figure . International market currently served by commercial modular construction (Modular Building Institute, 2011)
In Finland, due to especial weather conditions, modular construction has always been in the center of attention of contractors. The main application of modular construction, however, has been in building and installing new balconies, elevator shafts, and over claddings while whole building construction has been less attractive (due to transportation problems). Figure 11. shows the application of modular construction in building and installing post attached balconies and over-claddings on a building in Finland.
Figure . New balconies and over-claddings post attached using modular construction - Finland
Although more than fifty domestic and foreign companies are active in the modular construction industry in Finland, only around twenty percent of them are active in whole building construction. The main players of the market are as below:
Unfortunately, author's research could not lead to gaining appropriate financial information in regard with the modular construction industry in Finland, although through making a comparison between Neapo's turnover (see figure 2.) and total turnover of building construction industry in Finland (Statistics Finland, 2012), it can be found out that Neapo, thanks to its Fixcel technology, is dominating the market (see figure 12.).
Figure . Neapo's share of building construction in Finland
The last issue which is worth mentioning is that although modular building construction industry accounts for a considerably small sector in Finnish building construction market, Neapo's achievements, as well as technological development in modular construction industry, in the long-term can threaten the main building construction industry. Hence, in the long-term, the main building contractors also can be taken into account as indirect potential competitor.
Analysis Using Frameworks
Suarez and Lanzolla (2005) studied the effect of market and technological change on the strategic behavior of a technology in the industry. Considering Fixcel technology, Finnish market and module building construction industry, it can be found out that Neapo Oy, thanks to its giant shareholders, has already invested heavily on introducing the Fixcel as an innovative technology to the market. On the other hand, by entering to the market, Neapo has been the source of significant technological changes not only in producing wall, roof, and floor materials, but also in complement technologies (e.g. internal and external finishing activities). Moreover, studying Neapo's negative (but positively growing) operating profit during last five years shows the confidence of the company and its shareholders in investing in Fixcel technology. However, taking a look at modular construction market, it can be easily find out that the market is a very small segment (niche market) in comparison with whole building construction market in Finland. Considering the abovementioned facts, it can be concluded that Neapo Oy can be categorized as a "Technology Lead" in Suarez and Lorenzo's model. In fact the company tried to push the technology to the market to make a new awareness in regard with a demand (or advantage) which was not clear for the either costumers or contractors before. Figure 13. shows the strategic categorization of Fixcel technology in modular building construction industry as a "Technology Lead".
Figure . The combined effects of market and technological change (Suarez & Lanzolla, 2005)
Moreover, as mentioned before, customers and contractors were not aware of the need (and possibility) of such a technology change. In fact it was a case of "unexpected success innovation" (Drucker, 2006) which was first innovated to be used in the shipping industry. Thanks to familiarity of Neapo's main start-up core, the advantages of the strucure as a light and tension and fire resistant structure were incidentally found out to be the needs in modular building construction industry. Actually one of the reasons that at the begining the company started to invest on construction projects and keep the technology in house was the nature of their innovation and company's need to make the need in the market. All in all, aformenteiond analysis shows that Neapo's orientation in the market can be categorized as "market shaper" according to Benhon, et al (1999). Figure 14. shows current Neapo's strategic orientation toward modular building construction industry in Finland.
Figure . Strategic orientations toward customer and innovation (Benhon, et al., 1999)
In fact, considering the "Technology Leader" role of Neapo, it completely makes sense that the orientation of the company should be to shape the market and push technology awareness toward module construction industry.
Value Network and Disruptive Change Analysis
Value Network Analysis
Allee (2000) believes that companies can create value for their customers in three forms of goods and services, knowledge, and intangible benefits. In analyzing Neapo's value network in modular building construction industry, we can both consider forward and backward values. It other words, we can analyze the value that each of players in value network provide for the next ring in the value chain as well as the value that they provide for the previous ring. Here we have divided value creators in the market to eight main categories of 1) Neapo Oy, 2) Neapo's suppliers, 3) regulations, 4) patentes, 5) Internal and external finishing companies, 6) transportation companies (those companies which take care of transporting prepared apartment to the main site), 7) contractors (those companies for which Neapo Oy play the role of supplier), and 8) final customers. In order to avoid ambiguity, here in this analysis we mainly concentrate on values that Neapo provides for its contractors and costumers, while other values in the network will be discussed briefly.
Internal/external Finishing (flooring, bathrooms, facade, â€¦)
Values to Contractors:
- Product Quality
- Lower Price
- Weight Advantage
Values to Customers:
- Lower Price
- Time Advantage
- High Energy Efficiency
Figure . Neapo's value network in modular building construction industry
In Neapo's value chain regulators add value in the form of services by providing the company with inspection services and certifications. Besides, patents provide the company with expected requirements in the form of knowledge. Internal and external finishing companies add value to final product by providing goods, services, and proper revenue (monetary advantage) in the form of quality of goods and services. On the other hand, transportation companies also add value to final product by bringing time advantage alongside with abovementioned values for finishing companies.
In regard with values provided by Neapo, the company provides its contactors and final customers with the following benefits:
High vertical load bearing capacity
Energy Efficient and hermetically sealed
Good sound insulation
As it can be seen, and it could be expected, all of the values that Neapo delivers to its contractors and final customers are based on its technology advantage. These values can be categorized to quality, lower price, and weight advantage for contractors, and safety, lower Price, time Advantage, and durability for customers.
Disruptive Change Analysis
Christensen (1997) separates new technology into two categories: sustaining and disruptive. Sustaining technology relies on incremental improvements to an already established technology, while Disruptive technology lacks refinement, often has performance problems because it is new, appeals to a limited audience, and may not yet have a proven practical application.
Christensen (1997) points out that large corporations are designed to work with sustaining technologies. They excel at knowing their market, staying close to their customers, and having a mechanism in place to develop existing technology. Conversely, they have trouble capitalizing on the potential efficiencies, cost-savings, or new marketing opportunities created by low-margin disruptive technologies.
A disruptive change usually happens when the previous technology get discontinued. According to Tushman and Anderson (1986) a technology discontinuity either creates a new developed technology or substitutes for an existing technology. Looking back to modular building construction industry, it can be found out that technology development of the materials which were used in building modular structures had reached the maximum possible performance. From one side, using normal materials, which are used in building construction, such as concrete and steel would notably increase the weight of the final structure. On the other side, using low-weight materials, such as woods and plastics, could reduce the durability and safety of the final product. Besides even new high-tech improvements in nanotechnology and carbon fiber development could not help the problem since one of the most important competitive advantages of modular construction was directly related to time savings. This technological discontinuity was followed by lunching Fixcel technology to the modular building construction industry in 2007. Figure 16. depiccts technology life-cycles of traditional (current) materials used in modular building and emergence of Fixcel as a new technology in the industry after a technological discontinuity.
Figure . Discontiniuity of traditional materials used in modular construction, followed by lunching new Fixcel technology
Despite the fact that a similar technology was currently used is the ship building industry, Fixcel cannot be considered as an old technology or a sustainable one since firstly, new characteristics which are brought by Fixcel technology to the modular buildings (see section 4.1) have already started to become the basis of a fierce competition in the modular building industry. Secondly, Fixcel technology is potential to attract other market segments of whole building construction industry, due to its distinctive attributes. On the other hand, Fixcel provides a definite substitute (and not a complement) for traditional materials used to make walls, roofs, and floors.
Figure . Fixcel Technology low-end disruption
So far the current situation of Fixcel technology as a disruptive innovation has been analyzed. In order to have a better look to the technology strategy of the company in regard with technology disruption in the future, the report is going to take advantage of Dedehayir model (2012) with respect to determining strategies for future technology disruptions.
Regarding the initial state of functional relatedness, there is no doubt that Fixcel technology is functionally similar to current materials used for making modular cabins. On the other hand, it plays and unique role in complete substitution with current materials and does not act as a complement to them. Moreover, considering the future state of functional relatedness, it seems that the technology can gradually find its way to the main building construction market to play the same role (Substitute) in a bigger market segment. There is no doubt that in case of such an expansion, the competition will become tougher in the market. Drawing a conclusion out of put forward details, it could be obviously concluded that Fixcel's future competition pattern can be categorized as antagonistic rivalry, based on Dedehayir model (2012). Figure 18. shows the model as well as Fixcel's strategy as antagonistic rivalry.
Figure . Strategies for future disruptive technologies
Business ecosystem depicts the entire environment in which the company performs. It considers the main players of the related market as well as their relationship to other members of the environment. In fact it plots a network of companies which collaborate together to create value and deliver it to the final customer. In regard with business ecosystems around Neapo Oy, first two different roles of the company should be taken into account. The first role is the supplier; Neapo has recently started to serve as a supplier to some of major modular construction contractors based on a strategic alliance. However the company prefers to keep its fixcel technology in house. The later role of Neapo has introduced the company as a contractor which serves final customers in the market. On the other hand, considering the fact that the main (and the only) material which company needs to supply from other suppliers is steel bar, company's main suppliers are steel companies. Unfortunately, in spite of enormous efforts, Neapo's sources of steel supply could not be identified. But, it can be guessed that the company provides its needed raw material either from Eastern European market or South Eastern Asian market (which does not make any different in our analysis). Apart from the main supplier, also machinery suppliers should provide the company with their machinery (less frequently) and service (frequently).
Considering two different roles of Neapo, which was discussed earlier, in the market, Neapo Oy acts both as supplier and contractor for its strategic partners and final customers respectively. Besides, the company needs some other services as a complement to its goods and services to deliver the final product to the customer. First, a group of companies which take care of finishing activities of making an apartment: These companies take care of services such as tiling, wiring, painting, building façade, etc. Undoubtedly the level of services provided with this group of companies plays a significant role in the final delivered value to customer. More importantly, logistics contractors, as another complementor of final product, play a significant role in delivering appropriate value to the final customers. Their task is to transport the built structure to the main site to be installed on the final building. Figure 19. shows two different steps of transportation process of a completed construction to the main site.
Figure . Two different steps of transportation process.
Transportation companies are one of the main players in Neapo's ecosystem since there are only a few companies with appropriate equipment to be able to perform the transportation process of such structures in Finland, and it makes increases their bargaining power against Neapo.
Finally the contractors are those construction companies which have strategic alliance with Neapo and are licensed to limitedly use Fixcel technology in their projects. Figure 20. gives a better understanding about Neapo's ecosystem.
Rolling Mill Manufacturers
Internal/external Finishing (flooring, bathrooms, facade, â€¦)
Figure . Neapo's ecosystem.
Considering the fact that Neapo has started its activity since 2007 as a technological start-up and has not had any previous products or technologies, it would be slightly difficult to analyze the change pattern of its values during few last years. The same rule applies for disruptive change. Instead, possible future impacts on company's values as well as technology can be studied based on available information.
As mentioned before, growing market share of Neapo seems to promise future penetration to the main building construction industry. In fact, Fixcel (as well as its tiered product, modular building) has a great potential to pass its first steps of consumer adoption and achieve a bigger share from the entire building construction industry. Moreover, it is possible that in the future the material is going to be used not only in modular construction, but also in normal building construction activities, based on its notable advantages. These changes can bold the role of transportation companies and those companies which are in charge of finishing activities. The next subsection describes the subject a bit more.
Bottlenecks in Neapo's Ecosystem
Analyzing the Neapo's ecosystem and its possible changes in the future in can be easily found out that one of the main bottlenecks of the system could be transportation companies. Due to gigantic size of pre-fabricated apartments and their enormous weight only a few transportation companies are able to provide equipment and facilities to perform such transportations. This process not only increases their bargaining power as an external force, but only in few years, after achieving a bigger market share, could make serious problems in terms of scheduling and project delays.
On the other hand, considering the fact that in an ecosystem all the components affect each other, in order to solve the bottleneck problem, we should refer to previous ring in the chain. So far Neapo has solved the problem of heavy concrete walls in modular constructions. The next step of improving the quality (reducing the weight) of the final product is to introduce other innovative technologies to provide lighter material for other finishing activities such as tiling, bathrooms, taps, etc. it seems that the growing market of Neapa's made modular construction can activate other technological start-ups to solve a part of this problem. Also, one of the possible future changes in company activates and values could be about focusing on R&D activities to overcome technological problems in this manner.
Discussion and Conclusion
This report tried to analyze the current competitive situation of a new lunched technology (Fixcel) in modular building construction in Finnish market. Based on the conducted research Neapa Oy a young technological start-up which entered modular construction market using its innovative technology, Fixcel, has experiences rapid financial and market share growth during past four years. Based on its innovative material to be used in modular construction, Fixcel from the beginning decided to act the role of niche player in the building construction industry. However the company has already gained an unbelievable market share (3.5%) of Finnish building construction market and its growth trend is also promising further successes in the future. Due to its innovative approach to the subject and lack of market awareness regarding its technology the company has already put all its effort on shaping the market based on making the market sensitive to the benefits of Fixcel. Through this method, Neapo is trying to keep its technology leadership position in the market and simultaneously make the need for higher quality living spaces (based on Fixcel technology) with lower prices in the market through delivering significant values (Safety, lower price, time advantage, and durability) to its customers.
Looking at Fixcel technology as a disruptive innovation in the market, and considering its role in its business ecosystem, so far the report has been successful to indicate the market characteristics and Neapo's position in the market. In fact the company has already taken the first steps of managing and appropriating its technology. According to Rieck and Dickson (1993) the next tasks Neapo's technology strategy are Technology Positioning, Industry Forecasting, and Setting Horizons. It seems that the company has already taken great steps in positioning its technology in its niche market, although as discussed earlier, according to notable advantages of its technology future penetration to different segments of the market can also be considered in five to ten years. On the other hand, looking at Neapo's financial figures it seems that the market has hosted their technology warmly and this promises future changes in the market. Hence, it would not be out of mind for Neapo to see itself the market leader in Finnish modular building construction industry within 10 years. Besides, the threats of new entrants to the market as well as unexpected reactions of other competitors are the facts which should be taken into account. Undoubtedly, new opportunities in the market will attract other players (even those which are active in other construction industry sectors) to the subject. In that case the threat of enormous financial resources of giants of the market cannot be ignored. In order to reduce the risk of facing such problems, and improve the situation of current Neapo's ecosystem bottlenecks, it is recommended that the company put most of its effort on research and development to achieve other breakthrough technologies in regard with gaining competitive advantage in the long-term and change its position from niche player to technology leader. Besides, the company should also investigate possible methods of applying Fixcel technology in normal building construction industry. Furthermore, Expanding its services and products (through strategic partnership) in Nordic region as well as Russia could be another objective in 10-15 years.