Kristianstad University                                                                                                                                                                                                                                                                                                      
                                        SE-291 88 Kristianstad 
                                        +46 44 250 30 00 
                                        www.hkr.se 
                                                                                                                         
                                                                                                                        Bachelor Thesis, 15 credits, for the degree of Bachelor of Science in Business 
                                                                                                                        Administration: International Business and Marketing 
                                                                                                                        Spring Semester 2021  
                                                                                                                        Faculty of Business 
                                                                                                                        Amazon: Unwelcome Giant?!  
                                                                                                                        A case study on competitive 
                                                                                                                        dynamics developed from 
                                                                                                                        Amazon’s entry into the 
                                                                                                                        Swedish market 
                                                                                                                           
                                                                                                                        Sarah Gunnarsson & Sofia Lilliehorn 
                                                                                                                                                                                                                                                                               
                                                                                                                        Kristianstad University | SE-291 88 Kristianstad | +46 44 250 30 00 | www.hkr.se 
                                         
                                                                                                                         
                                                                                                                        Author  
                                                                                                                        Sarah Gunnarsson and Sofia Lilliehorn 
                                                                                                                        Title 
                                                                                                                        Amazon: Unwelcome Giant?! A case study on competitive dynamics developed from Amazon’s 
                                                                                                                        entry into the Swedish market 
                                                                                                                        Supervisor 
                                                                                                                        Indira Kjellstrand 
                                                                                                                        Examiner 
                                                                                                                        Heléne Tjärnemo 
                                                                                                                        Co-examiner 
                                                                                                                        Lisa Källström 
                                                                                                                        Abstract  
                                                                                                                        For  the  last  months,  the  Swedish  e-commerce  market  has  experienced  impacted  competitive 
                                                                                                                        dynamics followed by the entrance of the US giant, Amazon. This thesis investigated the competitive 
                                                                                                                        dynamics that developed after the entrance of Amazon on the Swedish e-commerce market. The 
                                                                                                                        research aimed to accentuate how the competitive dynamics developed, how Amazon was perceived 
                                                                                                                        on the Swedish market, and whether it was in fact unwelcome by Swedish firms. Suspicion of the 
                                                                                                                        unfamiliar giant resulted in various reactions from the Swedish players. The thesis conducted a case 
                                                                                                                        study of the competitive dynamics that developed from Amazon’s entrance into the Swedish market. 
                                                                                                                        A conceptual framework based on previous research was constructed to connect essential theories 
                                                                                                                        within competitive dynamics. The framework represents an industry’s competitive environment 
                                                                                                                        when an actor enters a new market. The empirical data was collected through qualitative research 
                                                                                                                        interviews with five Swedish firms operating within the book industry, children product industry, 
                                                                                                                        and marketplace industry. Findings showed that competitive dynamics is evidently impacted. The 
                                                                                                                        Swedish players are less threatened than expected, and many preparations were in store before the 
                                                                                                                        entrance. Findings additionally found that Amazon could help to drive customer consciousness of 
                                                                                                                        marketplaces. This thesis has contributed to additional insight in competitive dynamics from a firm 
                                                                                                                        perspective.   
                                                                                                                        Keywords  
                                                                                                                        Competitive Dynamics, Actor, Reactor, E-commerce, Value Co-Creation, Value Appropriation  
                                                                                                                        Kristianstad University | SE-291 88 Kristianstad | +46 44 250 30 00 | www.hkr.se 
                                         
                                                                                                                         
                                                                                                                                                                                                                                              Acknowledgements 
                                                                                                                                                                                                             We would like to express our gratitude to… 
                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                            Indira Kjellstrand 
                                                                                                                                  For phenomenal engagement, support, and genuine interest. Indira believed 
                                                                                                                                                     in us since day one and inspired us with her incredible guidance and 
                                                                                                                                                                                                                                                                                                         expertise. 
                                                                                                                                                                                                                                                                                Annika Fjelkner 
                                                                                                                                              For excellent linguistic expertise, motivation, support, and engagement. 
                                                                                                                                                                   Annika’s constructive feedback made this thesis more readable. 
                                                                                                                                                                                                                                                                                              Participants 
                                                                                                                                                        For devoting time in their stressful calendars, to share their honest 
                                                                                                                                                opinions, for which we are incredibly grateful. Their contribution was 
                                                                                                                                                                                                                                                                invaluable for this thesis. 
                                                                                                                                                                                                                                                         Our families and friends 
                                                                                                                                   For always being patient and supporting us with positive energy in the most 
                                                                                                                                                                                                                                                                                            stressful times. 
                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                    Kristianstad 27th or May 2021 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                        Kristianstad University | SE-291 88 Kristianstad | +46 44 250 30 00 | www.hkr.se 
                                         
                                                                                                                         
                                                                                                                                                                                                                                                       Table of Contents 
                                                                                                                        1. Introduction ........................................................................................................ 7 
                                                                                                                                    1.1 Background .................................................................................................... 7 
                                                                                                                                    1.2 Problematization .......................................................................................... 10 
                                                                                                                                    1.3 Research Purpose ......................................................................................... 12 
                                                                                                                                    1.4 Research Question ....................................................................................... 13 
                                                                                                                                    1.5 Disposition ................................................................................................... 13 
                                                                                                                        2. Theoretical Framework ................................................................................... 14 
                                                                                                                                    2.1 Competitive dynamics ................................................................................. 14 
                                                                                                                                    2.2 Actor ............................................................................................................ 16 
                                                                                                                                    2.3 Reactor ......................................................................................................... 17 
                                                                                                                                    2.4 Competitive Environment ............................................................................ 19 
                                                                                                                                    2.5 Conceptual Framework ................................................................................ 23 
                                                                                                                        3. Methodology ..................................................................................................... 26 
                                                                                                                                    3.1 Research Philosophy .................................................................................... 26 
                                                                                                                                    3.2 Research Approach ...................................................................................... 27 
                                                                                                                                    3.3 Research Design and Strategy ..................................................................... 28 
                                                                                                                                    3.4 Data Collection ............................................................................................ 29 
                                                                                                                                                 3.4.1 Research Interviews .............................................................................. 29 
                                                                                                                                                 3.4.2 Industry and participant selection ........................................................ 30 
                                                                                                                                                 3.4.3 Interview guide ..................................................................................... 33 
                                                                                                                                                 3.4.4 Transcriptions ....................................................................................... 34 
                                                                                                                        Kristianstad University | SE-291 88 Kristianstad | +46 44 250 30 00 | www.hkr.se