Concentration ratios,strategy and performance: The case of the Norwegian telecommunications industry

This article explores how changes in industry structure are reflected in changes in performance and strategy. A set of interrelated hypotheses is proposed and examined in one industry (the Norwegian telecommunications industry). Increasing competition was found to be positively related to increasing industry concentration but negatively related to new entries and performance as measured by value added. Large and small firms were found to vary in performance, and they are seemingly applying different strategies in coping with stagnating market opportunities.