running its own Apple stores to Columbia Pictures in sell its products. By doing so, 1982, movie studio, for Apple saves commission it $750 million. Luckily for would have to otherwise pay to Coca-Cola, its retail partners & maintains a investment paid off— uniform sense of aesthetics Columbia was sold to across stores worldwide. Sony for $3.4 billion just Backward integration seven years later. o ZARA manufactures the clothes RETRENCHMENT it sells in its retail stores as well o Facebook parent Meta designs them in-house. This announced its most significant backward vertical Integration round of layoffs ever in ensures ZARA can keep up with November. The company said it changing fashion trends and plans to eliminate 13% of its update inventory quickly staff, which amounts to more relative to competitors, than 11,000 employees The resulting in higher business has been hurt by profitability[3] and a competition from rivals such as competitive advantage in the TikTok, a broad slowdown in clothing industry. online ad spending and horizontal integration challenges from Apple’s iOS o Walt Disney Company's $7.4 changes. billion acquisition of Pixar DIVESTITURE Animation Studios in 2006 o In 2022, foods manufacturer o Disney began as an animation Kellogg announced its plans to studio was facing market split into three separate saturation with its current companies, spinning off its operations along with creative cereal and plant-based food stagnation. brands. While the legacy o Pixar operated in the same Kellogg's company will focus on animation space as Disney, but the frozen breakfast and snack its (digitally) animated movies foods that bring in 80% of the used cutting-edge technology old company's revenue, the and an innovative vision. The spin-offs will focus on the cereal deal is now widely considered markets and plant-based food to have literally and figuratively Liquidation strategy reanimated Disney, expanded o Another example is Toys “R” Us. its market share, and boosted In 2017, the company filed for its profits. Chapter 11 bankruptcy and Diversification decided to liquidate its assets to o Related pay off its debts. The company Apple launched the closed down its remaining Macintosh personal stores and sold off all its assets computer, the iPod in to pay its creditors. 2001, iTunes software in 2003 and the iPhone in 2007. The company has since diversified into tablets, watches, smart-audio, and even electric vehicles.