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Professor: Tatiana Velez Angel: International Strategic Management
Professor: Tatiana Velez Angel: International Strategic Management
TYPES OF STRATEGIES
VERTICAL INTEGRATION
INTENSIVE
DIVERSIFICATION
TYPES OF STRATEGIES
Forward Integration
FORWARD INTEGRATION
BACKWARD INTEGRATION
TYPES OF STRATEGIES
Market Penetration
Intensive Strategies
Market Development
Product Development
MARKET PENETRATION
Deals with enhancing the share of market by effective and innovative strategies in order to make the present product more effective and attractive.
MARKET DEVELOPMENT
PRODUCT DEVELOPMENT
Deals with increasing the sales as well as revenues by enhancing the quality of existing products. The quality of existing products can be easily enhanced by adding different flavors in it.
TYPES OF STRATEGIES
Concentric Diversification
Diversification Strategies
Conglomerate Diversification
Horizontal Diversification
DIVERSIFICATION STRATEGIES
Why Firms Diversify:
To grow To more fully utilize existing resources and capabilities. To escape from undesirable or unattractive industry environments. To make use of surplus cash flows.
CONCENTRIC
A company acquires or develops new products or services (closely related to its core business or technology) to enter one or more new markets.
HORIZONTAL
Adding related or similar product/service lines to existing core business, either through acquisition of competitors or through internal development of new products/services.
CONGLOMERATE
By engaging in a number of acquisitions over time, managers can come to develop an expertise about how the acquisition process should be managed.
TYPES OF STRATEGIES
Retrenchment
Defensive Strategies
Divestiture
Liquidation
RETRENCHMENT
A corporate-level strategy. Seeks to reduce the size or diversity of an organization's operations. Reduction of expenditures in order to become financially stable. Retrenchment is a pullback or a withdrawal from offering some current products or serving some markets.
DIVESTITURE
Selling a division or part of an organization. Used to raise capital for further strategic acquisitions or investments. When firms try to focus on their core strengths, lessening their level of diversification.
LIQUIDATION
Selling all of a companys assets, in parts, for their tangible worth Recognition of defeat. Cease operating than to continue losing large sums of money
SOURCES
All of the information which is on these slides was taken from: http://www.businessdictionary.com/definition/concentricdiversification.html#ixzz1lYJMhiI
www2.gsu.edu/~wwwsmg/BA8993week10.ppt
http://www.mba-tutorials.com/strategy/1112-intensive-strategies.html
http://www.investopedia.com/terms/f/forwardintegration.asp#ixzz1lYfXLCay