At present, many of these companies face both new challenges and opportunities. The market is changing, prices are changing and there is a high level of international competition. By using digital tools and developing own sales channels, companies can actively ensure both growth and the continuation of their unique heritage. But only if you dare to bet.
Günderbygda as disappeared
Many years ago, the small village I come from had a rich business life. 100 years ago, there were contractors and companies in a number of areas: knife factory, tildidifakt, brick mill and a mechanical workshop, to name someone. In addition, there were schools, nurserys, several shops, post offices, banks, electrical business and libraries — a living and active built in growth.
As the time changed and major social trends affected Norwegian industry and the Norwegian economy, many of the companies disappeared one by one. With them, too, much of the village's life base disappeared, and most shops had to lay down.
But one company fortunately managed to pass. Through their cost focus, innovation and adaptation, they were able to survive, renew and grow for a time. It has probably not been easy, but today they sell their products worldwide, and are still a solid corner stone farm in the village. Such businesses allow them to live here, have jobs, infrastructure and an environment.
Where others had to lose, some have been able to combine tradition with modernisation and digitisation, which has ensured their place in both the local and global markets. Such corner stone holdings are also able to carry out a generation shift allowing changes over time. In short, there are companies that dare to bet.
What is a cornerstone holding, and why are they so important?
Much of modern Norway has been built around the 'city and country, hand in hand' principle, where communities and corner-stone companies have historically been important – both for the village and for the country's economy as a whole.
A corner-stone holding is often the largest employer in a municipality or a locality, and they play an important role in the local economy. They contribute to employment, both directly and indirectly, through subcontractors and partners. They contribute to the income of local government taxes, which are added to the value of the residents.
Many of these companies have a long history and represent an important part of Norwegian industry and craft traditions. The preservation and further development of these enterprises ensures not only jobs but also a living community.
Some corner-stone holdings are growing, and some end up as international players with great importance for the Norwegian economy. Hydro, Jotun, Ekores and Orcla are examples of this being possible.
Digitalisation as a competitive advantage
Many Norwegian corner stone companies have already addressed the struggle and succeed in digitising and branding, but many remain and must act quickly to secure the future. Many of these companies may also have to do through a generation shift.
It may seem a big and demanding task and it is tempting for a business owner to sell abroad or larger operators instead of taking the big fight. But there's too many people in there. Where to Start? There are many good excuses for running “business as usual”.
Digitalisation can give local companies a chance. If you have a good product, a private online store is a shortcut into a national or international market. But if the knowledge is low, it must be built. It takes time, and it needs to be maintained.
Digitalization may not be as difficult as you often think. It requires real efforts, will and ability to learn and invade, but with proper strategies and resources digitalisation can be a way to new opportunities and growth.
Digitalisation is not just about being online but about using technologies to streamline operations, improve customer communication and reach new markets. A strong digital presence makes it easier to compete, including internationally. While companies can offer a more seamless and modern purchasing experience, the local community can also be marketed.
The use of e-commerce solutions, automation of processes and data-driven marketing can give corner-stone companies a completely new competitive force. And the tools are already there. Many of them are not as difficult, expensive or time consuming as one might have thought.
From addiction to independence
Traditionally, many have left sales to other, good third parties. They've had shops, and they got every website and online stores. They are larger, and often have a market department that can do the job. It is safe and provides volume for those who produce the products.
Selling through third parties has many good qualities, and many third parties are important and good partners. They can contribute to increased distribution and market visibility. But over time, this has also led some companies to become too dependent on only them.
It's easy to leave the sale to others, and you're willing to give up margins to get volume. When this happens, the company may lose control of its own brand name, customer data and price strategy, which may weaken their competitiveness in the longer term. After all, a third party selling several hundred brands has no opportunity to market each brand. They must focus on winning the fight against their own competitors.
Traditionally, many corner stone companies have become dependent on large retail chains to sell their products. This has often given them limited control over price strategy, customer data and branding. It is often as long as the economy grows or is stable, but in the event of major societal changes it is dangerous to be a small player who depends on others.
By establishing their own online shops, companies can take control of distribution, improve margins and create direct relationships with customers. This provides opportunities for loyalty building, more efficient marketing and better performance over time. You can get control of your own brand name.
Many corner stone farms have become too dependent on the Norwegian market and they are probably aware of it. The Norwegian market is low globally, and it limits revenue. Norwegian products have historically been of high quality and can be sold worldwide. Norway is too many of them a quality sign. Why limit itself to selling only in your own country?
There is a large potential for Norwegian enterprises to expand internationally, and digitisation is a key to achieving this possibility.
Does this dissociate well with third parties? Absolutely not. This is about good communication, clear agreements, and pricing. In many cases, it would be positive for a third party that you as a cornering company have good control of your own brand.
Success stories are out there
You own a corner stone holding? You do not need to re-invent the wheel, several Norwegian companies have shown that digital change is possible.
Many Norwegian actors have gone from relying on retailers to selling directly to customers via their own online store. Similarly, branded products such as Devol and Aclima have combined digital presence with traditional craftsmanship to expand both nationally and internationally. They still have a good relationship with the third parties.
These success stories show that it is possible to balance tradition with modernisation.
But what does it take to succeed?
To succeed in digitisation and internationalisation, cornerstone companies need to invest in the right tools and skills. It'll take time.
It involves developing user-friendly online shops, ensuring good logistics solutions, optimising digital marketing and using analytical tools to better understand customer needs. At the same time, it is important to build a strong brand that stands out in the market and communicates the company's history and values effectively.
There's plenty of pitfalls out there for the first time taking the digital steps. It's easy to throw away the focus, money and time if you take the wrong choice.
What technical solutions should be chosen? What type of marketing works? Where do you start? Many questions are to be answered, and the answers are often not found until you have tried and failed sometimes.
It shouldn't stop you. It's always scary to jump - but digitisation and internationalisation is not just a necessity - it's a possibility for you and your company. By embraced new technologies and modern sales strategies, cornerstone companies can both preserve traditions and create a sustainable future.
I believe the Norwegian corner stone farms that have survived to this point have the right to life. They have proved their ability to adapt and create value in an ever-changing world. And they have many possibilities to grow.
With the right approach, they can not only survive in the future but also become an important contributor in the Norwegian economy. Both locally and internationally, they can act as ambassadors for Norway, demonstrate our strong industrial culture and maintain proud craft traditions.
By embraced new technologies and modern sales strategies, your cornerstone business can preserve traditions and create a sustainable future - for you and society around you!
- You dare?