STRATEGIES

Forward Integration:

A business strategy that involves a form of vertical integration whereby activities are expanded
to include control of the direct distribution of its products.

Example:

A good example of forward integration is when a farmer sells his/her crops at the local market
rather than to a distribution center.

Backward Integration:

A form of vertical integration that involves the purchase of suppliers in order to reduce dependency.

Example:

A good example would be if a bakery business bought a wheat farm in order to reduce the risk associated
with the dependency on flour.

Horizontal Integration:

the process of joining similar companies or taking over a company in the same
line of business as yourself

Example:
a car manufacturer merging with another car manufacturer. In this case both the companies are in the
same stage of production and also in the same industry.
Market Penetration:

The activity or fact of increasing the market share of an existing product, or promoting
a new product, through strategies such as bundling, advertising, lower prices, or
volume discounts.

Example:

Market Development:

The expansion of the total market for a product or company by (1) entering new
segments of the market, (2) converting nonusers into users, and/or (3) increasing
usage per user.

Example:

Product Development:

The creation of products with new or different characteristics that offer new or
additional benefits to the customer.

Product development may involve modification of an existing product or its

presentation, or formulation of an entirely new product that satisfies a newly defined
customer want or market niche.

Related Diversification:

Adding new but related products or services.

Un Related Diversification:

Adding new unrelated product or services.