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This is the first of a three-case series (399-140-1 to 399-142-1). In 1990, Sulzer Infra, part of Swiss-based Sulzer Technology Corporation, conducts engineering and contracting operations throughout Europe in the non-residential construction industry. Although economic conditions in European markets have been favourable in recent years, the construction industry has experienced increasing fragmentation, and also stagnation in certain sectors. Sulzer Infra management examines elements relating to strategy determination: external factors of influence, industry segmentation, characteristics of the business, technology, competition and company performance including strengths and weaknesses. Several strategy options exist: entering new segments, acquisition and vertical or horizontal expansion. This case is suitable for strategic management courses.