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 Forward integration  UnRelated

o Apple integrates forward by Coca-Cola purchased


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.

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