You are on page 1of 5

Forward Integration:

a Tesla, Inc.: By creating its own network of retail locations under the Tesla brand, Tesla implemented
forward integration. By opening these locations, Tesla is able to contact prospective buyers directly,
arrange test drives, and provide information on their electric cars without having to rely entirely on
independent dealerships.

b. Starbucks Corporation: By purchasing coffee farms and roasting facilities, Starbucks carried out
forward integration. Starbucks can guarantee a steady supply of premium coffee beans, keep control
over the roasting process, and eventually raise the caliber of its goods by owning these facilities.

Backward Integration:

a. Apple Inc.: A prime example of backward integration is Apple's shift from Intel processors to its own
M1 chips. This move represents Apple's strategy to gain more control over its product components,
aiming for enhanced performance and efficiency.

b. Toyota Motor Corporation: Toyota is another company that has implemented backward integration in
its supply chain. Toyota has been known to acquire suppliers that provide critical components for its cars,
such as engines and transmissions. By owning these suppliers, Toyota gains more control over the quality
and delivery of these components.

Horizontal Integration:

a. Facebook, Inc.: Facebook purchased WhatsApp and Instagram in order to implement horizontal
integration. Facebook increases its user base, improves its advertising prospects, and solidifies its
position as the leading player in the social networking sector by incorporating these social media
networks into its portfolio.

b. The Walt Disney Company: Disney purchased 21st Century Fox in an effort to achieve horizontal
integration. Disney was able to bolster its position in the entertainment sector, acquire significant
intellectual property, and grow its library of material with this transaction.

Market Penetration:

a. Coca-Cola Company: Coca-Cola aggressively advertised and promoted its products in existing markets
as part of its market penetration efforts. To do this, one can support significant events, start marketing
initiatives, and provide a range of promotional offers in an effort to boost sales and market share.

b. McDonald's Corporation: McDonald's used discounts, time-limited deals, and value menus to expand
its customer base and boost foot traffic to its restaurants in order to achieve market penetration.

Market Development:
a. Netflix, Inc.: By introducing its streaming services in new nations and areas throughout the world,
Netflix increased its market share. Netflix expands its user base and income sources by going after
undiscovered markets.

b. Uber Technologies, Inc.: Uber applied market development strategies by expanding its ride-hailing
services into new cities and countries. By entering new markets, Uber increases its user base, enhances
brand awareness, and generates additional revenue.

Product Development:

a. Revolut.: Revolut also operates a children's prepaid card account called Revolut <18, designed for kids
aged 7-17 to help them manage their money and build essential financial skills. Revolut Junior integrates
directly with the main Revolut app, allowing parents to create an account for their children, transfer
money, access transactions, and more.

b. Procter & Gamble: Procter & Gamble invests in product development by launching new formulations,
variations, and extensions of its existing brands. By introducing innovative products, P&G meets evolving
consumer needs and preferences while expanding its product portfolio.

Related Diversification:

a. Amazon.com, Inc.: With Amazon Web Services (AWS), Amazon expanded into the cloud computing
services market. Utilizing its knowledge of infrastructure and technology, Amazon entered a
corresponding market and profited from the rising demand for cloud services.

b. Honda Motor Company: provides a good example of leveraging a core competency through related
diversification. Although Honda is best known for its cars and trucks, the company started out in the
motorcycle business. Through competing in this business, Honda developed a unique ability to build
small and reliable engines

Unrelated Diversification:

a. General Electric (GE): With the purchase of NBCUniversal, GE expanded into the media industry in
addition to its primary industrial operations. Through this action, GE was able to diversify its revenue
sources and enter a whole new industry.

b. Virgin Group: Virgin expanded into a number of sectors, including as space exploration, music,
telecommunications, and airlines. Virgin was able to distribute risk and take advantage of opportunities
across other industries because to the unconnected diversification strategy.
Retrenchment:

a. Gap Inc.: Gap closed unprofitable locations and streamlined its operations as part of a retrenchment
plan. Gap sought to increase profitability and fortify its position against competitors by concentrating on
its key brands and cutting expenses.

b. BlackBerry Limited: BlackBerry carried out layoffs by reorganizing its operations, cutting employees,
and leaving the smartphone hardware manufacturing sector. BlackBerry was able to concentrate on
services and software development because to this calculated approach.

Divestiture:

a. Pfizer Inc.: GlaxoSmithKline acquired Pfizer's consumer healthcare segment. Pfizer wanted to reduce
costs, concentrate on its main pharmaceutical business, and increase shareholder value, so it sold off
this division.

b. General Electric (GE): GE divested its biopharma business to Danaher Corporation. This divestiture
allowed GE to reduce debt, strengthen its balance sheet, and focus on its core industrial businesses.

Liquidation:

a. Toys "R" Us: Toys "R" Us underwent liquidation after filing for bankruptcy. The company sold off its
assets, closed its stores, and ceased operations due to financial difficulties and declining sales.

b. Lehman Brothers Holdings Inc.: Lehman Brothers liquidated its assets and filed for bankruptcy during
the 2008 financial crisis. The collapse of Lehman Brothers had significant repercussions on the global
financial system.

Overall Cost Leadership:

a. Ryanair Holdings plc: Ryanair is known for its overall cost leadership strategy in the airline industry. By
operating a low-cost business model, offering no-frills services, and focusing on operational efficiency,
Ryanair attracts budget-conscious travelers and maintains its position as one of the largest European
airlines.

b. Walmart Inc.: Walmart is a prime example of overall cost leadership in the retail industry. Through
economies of scale, efficient supply chain management, and aggressive pricing strategies, Walmart offers
everyday low prices to consumers and dominates the retail market.

Differentiation:

a. Nike, Inc.: Nike differentiates its athletic footwear and apparel through innovative designs, advanced
technology, and high-quality materials. By associating its brand with performance, style, and
authenticity, Nike commands premium prices and maintains a strong competitive position in the
sportswear market.

b. Apple Inc.: Apple differentiates its products through sleek designs, intuitive user interfaces, and
seamless integration of hardware and software. By focusing on user experience, aesthetics, and
innovation, Apple creates a unique brand identity and fosters customer loyalty.

Cost Focus:

a. Dollar Tree, Inc.: Dollar Tree focuses on cost leadership within the discount retail industry by offering a
wide range of products priced at $1 or less. By maintaining a low-cost structure and operating small-
format stores, Dollar Tree attracts price-sensitive consumers seeking value-priced merchandise.

b. Southwest Airlines Co.: Southwest Airlines follows a cost focus strategy in the airline industry by
offering no-frills services, point-to-point routes, and efficient operations. By minimizing

Sources:

• https://www.fohlio.com/blog/vertical-vs.-horizontal-integration-a-comprehensive-
guide#:~:text=One%20notable%20example%20of%20a,dominance%20in%20the%20EV%20indu
stry.
• https://www.luxuo.com/business/vertically-integrated-businesses-ensures-stability-in-the-
market.html
• https://www.linkedin.com/pulse/ma-guide-part-11-backward-integration-eduard-grigoryan-
vjqjf#:~:text=A%20prime%20example%20of%20backward,for%20enhanced%20performance%2
0and%20efficiency.
• https://www.investopedia.com/ask/answers/051315/what-are-some-examples-horizontal-
integration.asp
• https://blog.boxmode.com/best-examples-of-a-market-penetration-
strategy/#:~:text=Due%20to%20the%20brand's%20incredible,to%20people%20with%20differen
t%20needs.
• https://www.sprintzeal.com/blog/netflix-marketing-
strategy#:~:text=Netflix's%20marketing%20strategy%20is%20data,channels%20are%20used%20
for%20promotions.
• https://maze.co/collections/product-development/examples/
• https://startuptalky.com/procter-and-gamble-p-g-marketing-
strategy/#:~:text=P%26G's%20promotional%20mix%20encompasses%20advertising,add%20imp
act%20to%20their%20advertisements.
• https://oatuu.org/amazons-diversification-strategy-how-the-e-commerce-giant-continues-to-
expand-its-reach/
• https://open.oregonstate.education/strategicmanagement/chapter/7-diversification-
strategies/#:~:text=Honda%20Motor%20Company%20provides%20a,build%20small%20and%20
reliable%20engines.
• https://www.linkedin.com/pulse/exploring-benefits-drawbacks-unrelated-kennedy-mulenga-
mba#:~:text=American%20firm%20General%20Electric%20(GE,personal%20finance%20and%20
commercial%20finance.
• https://vinjyr.wordpress.com/2010/02/08/unrelated-diversification-a-look-at-the-virgin-group/
• https://www.retaildive.com/news/gap-lays-off-1800-employees/648785/
• https://www.tutor2u.net/business/blog/can-retrenchment-really-save-blackberry
• https://www.gsk.com/en-gb/media/press-releases/glaxosmithkline-plc-and-pfizer-inc-to-form-
new-world-leading-consumer-healthcare-joint-venture/
• https://www.retaildive.com/news/the-story-of-toys-r-us-bankruptcy-is-still-unfolding-and-it-still-
matters/617429/
• https://www.reuters.com/markets/us/after-14-years-lehman-brothers-brokerage-ends-
liquidation-2022-09-28/
• https://www.ijrar.org/papers/IJRAR19J3563.pdf
• https://www.essay48.com/4946-Dollar-Tree-Inc-Porters-Generic-Strategies
• https://panmore.com/southwest-airlines-generic-strategy-competitive-advantage-porter-
intensive-growth-strategies-ansoff-matrix

You might also like