Types of Strategies Stability

 Steel Authority of India has adopted stability strategy because of over capacity in steel sector. Instead it has concentrated on increasing operational efficiency of its various plants rather than going for expansion  Vodafone has adopted stability strategy , Since November 2008 we have seen tangible evidence of accelerating mobile data adoption where consumers and business customers are seizing the benefits of fast, reliable mobile data networks using smartphones and other mobile data devices such as tablets. Vodafone has returned to organic revenue growth and gained revenue market share in the majority of our markets.

Incremental growth
 Sunfeast company was firstly producing biscuit items only like marie, tiger , etc and was one of the best companies in producing biscuits company , but now it has entered into producing noddles also to increase their company

Profit strategy

Apple company is a good example of a company using profit-oriented price. Apple products are almost always the most expensive in their category. These products are also typically considered innovative and high quality. The company does not typically price to match the competition. It very rarely uses sales or discounts to encourage volume pricing. Instead, Apple relies on its reputation and strong fan base to accept and purchase its products at a price it sets internally to generate desired profits.

Another example of a company that uses primarily profit-oriented pricing is HarleyDavidson, the famous motorcycle manufacturer. The Harley brand is world-renowned. Its

Stability as a pause strategy  Dell adopted stability as a pause strategy. Hindustan Levers better known for soaps and detergents. uses its own by-products (biomass) to power its operations. This railway construction company was benefiting from the government’s economic stimulus plan for large-scale infrastructure investment. In late 2000. In the early to middle 1990s. rather than relying on sales designed to increase volume or matching its competitors' pricing.  In the India shoe market dominated by Bata and Liberty. By setting itself apart from the competition as a brand. A pause and proceed with caution strategy is common following periods of rapid and continuous growth. It wanted to take advantage of the favorable policies and define a business strategy to provide direction for a five-year period and ensure sustainable development in the long term across its corporate and core business lines. produces substantial quantity of shoes and shoe uppers for the export market. It also regains heat from effluence to warm process water and thereby further reduce its carbon.Catalyst Paper Corporation. it started selling a few thousand pairs in the .  Sustainable Growth Strategy adopted by Railway Construction Company . This allows the company to set pricing based on desired profit margin. a Canadian pulp and paper company. Dell computer had to pause and allow its business time to build the infrastructure and personnel to support its current sales level. this company paved the way for a premium pricing strategy that work Sustainable growth strategy  Catalyst Paper Corporation adopted Sustainable growth strategy .customers are fiercely loyal and its products have a reputation for quality. Accenture helped a railway construction company in defining a long-term sustainable business growth strategy. The company is one of the world’s leading enterprises in the engineering and construction sector.

It helps customer to have alternative choice and improve crowded and long queue problem during weekend. Market penetration  In order to increase market share in Singapore.  Concentric expansion  Bajaj Auto: It involves minimal organizational changes.   Eg. Was sold in Europe. NTUC FAIRPRICE has opened 24-hour store (FAIRPRICE EXTRA) to provide more conveniences to customer especially working adults as this customer category usually unable to shop during normal operation hour. Latin America and Asia. . it has already a large demand of product in urban areas . : ITC has captured substantial market share in cigarettes.  Unilever introduced Sunsilk shampoo in US. This is a pause proceed with caution strategy before it goes full steam into another FMCG sector that has a lot of potential Growth strategy  The case of Nokia goes over the growth strategies adopted by Nokia to counter competition from domestic players in the Chinese cell phone market. It enables the firm to master one or a few businesses and enable it to specialize by gaining an in depth knowledge of these businesses  Hindustan Lever expanding the sale of detergent powder in rural area .cities to find out the market reaction. :Reliance has captured substantial market share in textile yarn and intermediaries Eg.

: XEROX Company educated small business entrepreneurs to create new markets. refining. finishing. etc. Reliance now has a complete vertical product portfolio from oil and gas production.  Coca-Cola launched Diet Coke Sweetened with Splenda.g. The brand is based in downtown Los Angeles. say concern over trans fat. sewing. petrochemicals. this was a way to reach those nonbuyers. Product development  Frito-Lay removed trans fats from its salty snack products.  American Apparel is a fashion retailer and manufacturer that advertises itself as a vertically integrated industrial company. Products were modified without introducing new brands and no change in market potential. \ Vertical integration  The Indian petrochemical giant Reliance Industries is a great example of vertical integration in modern business. Still salty snack foods market and even those non-buyers who didn't buy for health reasons. Reliance's backward integration into polyester fibres from textiles and further into petrochemicals was started by Dhirubhai Ambani. hence there is no increase in market potential. Videocon (Consumer durables). Reliance has entered the oil and natural gas sector. synthetic garments and retail outlets.Market development   E. It is a new product and still in soft drink market or even diet soft drink market. where from a single building they control the dyeing. LG (TV). . were in Frito-Lay's target market. designing. along with retail sector. Colgate (oral care products). Indeed. Some of the companies which have made keen attempt to develop rural market are HUL (personal products).

 Backward integration  TOYOTA has agreement with its suppliers those promise to meet its JIT processing. Canadian communications giant Rogers is an example of forward integration. cut. Since the company controls both the production and distribution of its product. According to the management. the vertically integrated model allows the company to design. Raymonds and Reliance have set up their own retail outlets to sell their fabrics. distribute and sell an item globally in the span of a week. TOYOTA able to increase control powers these suppliers by investing supplier’s business development. a subsidiary company that operates local television channels. to strengthen its hold in the lower-end detergents market.cutting. The original founder Dov Charney has remained the majority shareholder and CEO. DCM. marketing and distribution of the company's product.  Forward integration   many companies like Bata.  Nirma undertook backward integration by setting up plant to manufacture soda ash and linear alkyl benzene. Bombay Dyeing. often using its own employees as subjects. This is win-win deal as TOYOTA also involved itself into suppliers businesses also help to increase revenue and profit at time same. which are produced by Rogers-managed television studios. These provide Rogers with an opportunity to advertise and sell its digital products using an electronic version of a retail store. it is an example of a balanced vertically integrated corporation. The company shoots and distributes its own advertisements. The Rogers TV channels show programs such as cooking and talk shows. It also owns and operates each of its retail locations as opposed to franchising. The company established Rogers TV. It helps to improve cost of inventory and cash-flow. both important inputs for detergents and washing soaps. .

and the Hewlett-Packard Company (HPQ) . is a prominent manufacturer of TVs and has a sizeable presence in the market in southern India. It helps to create competitive advantages to NOKIA Microsoft launched its first personal computers that double as entertainment centers . in 1974. edible oils. cast-iron pipes. In 1978. and cement. this unit was merged with two other units to form a consortium called TriStar Electronics. In this manner the growth strategy of the company started with Horizontal Integration. supplying such chips to several different manufacturers.  Solidaire India Ltd.Horizontal Integration   Aditya Birla Group’s acquisition of L&T Cements from Reliance to increase its market dominance is an example of horizontal integration A common successful horizontal integration example is how Intel (INTC) has dominated the computer processor market. It started with the name of Hi Beam Electronics Ltd. Subsequently. the brand name Solidaire was adopted. cellophane paper. ―ITC Ltd. Toshiba (TOSBF) .etc. Diversification   ―Kesoram Cotton Mills‖ into textiles. such as Dell (DELL) . paper and packaging. firebricks.‖ (a cigarette major) into hotel. Concentric diversification   NOKIA launched new features mobile phone which allows consumer surfing internet and mailbox.

also producing salt items such as tata namak and all. Not only did Exxon Mobil become the largest company . This is only possible because of technology related concentric diversification. a cigarette company diversifying into the hotel industry  The video-rental firm Blockbuster may acquire the DVD and music direct-marketing firm Columbia House Merger   In the 1999 merger of Glaxo Wellcome and SmithKline Beecham. Technology related   TATA COMPANY along with electronic items. Maggi" one of the favorite food item of young people is their most favorite because of the addition of various flavors. Market related  The case of Café Coffee Day provides insight into how the company concentrated solely on coffee retailing and became a leading coffee chain in a primarily coffee-drinking nation and expanded into international markets as well Conglomerate diversifaction  Indian company which have adopted apart of growth and expansion through conglomerate diversification the classic examples is of ITC. this merger led to the creation of the Centurion Bank of Punjab with 235 branches in different regions of India. when Exxon and Mobil signed a $81 billion agreement to merge and form Exxon Mobil. 3. Worth $82. and a new company.1 million (Rs.  Big oil got even bigger in 1999. both firms ceased to exist when they merged.6 billion in Indian currency). GlaxoSmithKline. was created merger was there between Centurion Bank and Bank of Punjab.

7 billion to set new benchmarks in the telecom industry. Rockefeller’s Standard Oil Company of New Jersey (Exxon) and Standard Oil Company of New York (Mobil). In 2008. Zain is known to be the third largest player in Africa and being acquired by Airtel it is deliberately increasing its base in the international market. A major reason for the takeover was for Kraft to increase its brand range and acquire the Cadbury chocolate brand. Acquisition or takeover  An example of a business takeover is that of Cadbury by Kraft foods in 2010. in fact. it reunited its 19th century former selves. There was uproar by the British public when it was announced and rumours of staff reductions and operations closures spread and produced a negative effect for Kraft. that the FTC required a massive restructuring of many of Exxon & Mobil’s gas stations. with a huge hold on the international market and dramatic earnings. . Kraft had to borrow over $7billion to fund the takeover and this increased its already unstable debt problems.in the world. in order to avoid outright monopolization.  Airtel acquired Zain in Africa with an amount of US $ 10. ExxonMobil remains the strongest leader in the oil market. ExxonMobil occupied all ten spots in the ―Top Ten Corporate Quarterly Earnings‖ (earning more than $11 billion in one quarter) and it remains one of the world’s largest publicly held company (second only to Walmart). John D. The merger was so big.

ground handling.000 Crore) this year Thus Jet and Kingfisher have decided to form an alliance in fields including fuel management.Their objective is to expand the capacity of the poultry plants which are already in operation.‖.. The new mobile operator is the ―first nation-wide youth focused mobile service‖ and the ―first CDMA service where all customers will be on RUIM (SIM)-based phones. Joint venture Joint Venture between Virgin Group and Tata Tele Services :  Virgin has partnered with Tata Telecom services in India keeping its rates for outgoing calls in line with those of competitors. based in Mumbai. The new company primarily sells super premium ice cream that is high in fat—and price. sharing of technical resources and crew for training and cross-utilization on similar aircraft types.10. Airline sector is set to incur a loss of $ 2bn (Rs. Ltd. This joint venture between Godrej Agrovet and Tyson will be called Godrej Tyson Foods.  Nestlé and Pillsbury recently formed a joint venture named Ice Cream Partners USA based in northern California.Economic slowdown and high ATF prices resulted in decline of air travel both in international and domestic segments of the air travel market. Joint Venture between Tyson Foods and Godrej Agrovet :  Tyson Foods. This will help both carriers to significantly rationalize and reduce costs and provide improved standards of service and a wider choice of air travel options to consumers with immediate . Inc in an effort in the direction of extending their company’s international presence has purchased 51% ownership of Godrej Foods.  Strategic alliance  Jet airways-Kingfisher Alliance market leaders with share of Jet – 30% kingfisher – 29% . Super premium ice cream sales were up nearly 13 percent in 1998.

the sole purpose of which was to advance the company's and the NAACP's goals of social and economic justice.  Retrenchment  Ford Motor Company announced a retrenchment strategy in January 2002. Managers often use a period of retrenchment to stabilize a company and attempt to resolve profitability and competitiveness. They could not merge as of rule that two airline companies with combined market share greater than 40 % cannot merge in India. So they formed an alliance. In 2006. Starbucks partnered with Pepsico to bottle. A Starbucks-United Airlines alliance has resulted in their coffee being offered on flights with the Starbucks logo on the cups and a partnership with Kraft foods has resulted in Starbucks coffee being marketed in grocery stores. In 1996.effect. . closed plants to kill off excess capacity and put the corporation’s finance subsidiary up for sale. General motors’ terminated thousands of employees. distribute and sell the popular coffee-based drink.  Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide in-house coffee shops. The new CEO’s charge was to stabilize the current business environment and return Kmart to financial health.  Turnaround  Kmart adopted Turnaround strategy.  Government normally adopts turnaround strategy to save loss making units by infusing more funds. the company’s work force worldwide was to be reduced by 35000 and several car models would be dropped from Ford’s line of automobiles.  General motors’ adopted retrenchment strategy. benefiting both retailers. Frappacino. Starbucks formed an alliance with the NAACP. Kmart announced the hiring of a new CEO to guide it through a turnaround strategy.

the Bombay High Court appointed a provisional liquidator in the petition for the voluntary liquidation of Empress Mills at Nagpur. The management of the mill carried the blame for neglect and delayed action. L&T divestment of cement units to Aditya Birla group.Efforts to negotiate a voluntary retirement scheme to cut down on the 6000 workers-employees strength also failed.After Mr. In the wider context. 1986. a Canadian firm Tatas divested Excel Industries. A proposal to merge the mill with other textile units of the Tatas could not materialize. the government policies did not prove favourable for the cotton textile industry.The major strategic cause for liquidation lies in the fact that for nearly 50 years. Ultimately. Liquidation   Sprint liquidated its Web-hosting division. the banks and financial institutions delayed the formulation of a rehabilitation package that could turn the mill around.Divestment    ConocoPhillips recently sold its Circle K convenience store chain to Alimentation Couche-Tard.Ratan Tata took over as chairman of the company in 1977. Rationalization of the product-mix across these units also proved to be a non-starer owing to resistance offered by executives. Empress Mills was a 113-years-old mill owned by the Tatas. Behind the liquidation petition lay a host of reasons. Liquidation at Empress Mills On May 14. because it fell out side the Tatas' definition of core business. . The state government apparently did not provide the much needed political support that could have helped save the jobs of the workers. Empress Mills did not invest in modernization or keep pace with competition. some efforts were made for modernization but these proved to be grossly insufficient. a profit-making company.

Combination  Tube Investments of India (TI). In cycles. They minimize the time that their planes . Steel Authority of India. Southwest attempts to offer the lowest prices possible by being more efficient than traditional airlines. In steel strips.  Cost leadership strategy Southwest Airlines  The airline industry has typically been an industry where profits are hard to come by without charging high ticket prices. cycles. Company adopted Combination Strategies to deal with the complexity of the environment The Tube Investments of India (TI). has created strategic alliances in its three major businesses : tubes. Southwest Airlines challenged this concept by marketing itself as a cost leader. it has entered into regional outsourcing arrangements with the UP-based and Hamilton Cycles in the western region. such as Colombian Supreme (Nayyar . TI has enteredinto a manufacturing contract with Steel Tubes of India. Although the combination of line breadth with efficiency is difficult to achieve. 1993). but high perceived uniqueness with some of its other offering. aMurugappa group company.   Focus strategy Nokia serves a broader market with wide range of products Apple Inc serves a narrow market with premium product range. Kraft is able to do so via its massive distribution efficiencies associated with its size and experience in the prepared foods market. and strips. and the Jindals  The Maxwell House Division of Kraft General Foods pursues production/distribution efficiency with its regular ground coffee.

  McDonalds is differentiated by its very brand name and brand images of Big Mac and Ronald McDonald. They also offer little in the way of additional thrills to customers. music players and cell phones. While this is less convenient than traditional retailers. but pass the cost savings on to them Ikea  The Swedish furniture retailer Ikea revolutionized the furniture industry by offering cheap but stylish furniture. Pepper with a different taste. and 3M Corporation with its emphasis on technology leadership and innovation. customers must collect the furniture in the warehouse and assemble at home themselves. Ikea does not assemble or deliver furniture. Differentiation strategy  Apple’s Differentiation strategy for computers and portable electronics has been consistent since the introduction of the Macintosh in 1984: integrated hardware and software from a single supplier.spend on the tarmac in order to keep them flying and to keep profits up. Apple's design skills and a pricing point that allows them to command a highly profitable market segment. Wal-Mart with value and more for your money. Caterpillar with high spare parts availability.Actions to obtain a significant value difference that customers will appreciate and be willing to pay for and which may increase their product/service loyalty. . This strategy is now applied to their desktops. Rolex as a prestige brand. it allows Ikea to offer lower prices that attract customers. Federal Express with superior service. Ikea is able to keep its prices low by sourcing its products in low-wage countries and by offering a very basic level of service. laptops. SONY follows this strategy and charge premium for their products relative to the other competitors.  Dr.

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