Types of STRATEGIC

MANAGEMENT
 Types of
Strategies

Integration Intensive Diversification Defensive

Strategies Strategies Strategies Strategies

1. Vertical Integration 1.Market Penetration 1.Related 1.Joint Venture

Forward
Forward
2.Market Development 2.Unrelated 2.Divestiture

Backward
Backward
3.Product Development 3.Liquidation
2.Horizontal Integration
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Fig. Complete Chart Of Strategic Management
 1.INTEGRATION STRATEGY
It is a strategy of "aggregation" or “expansion”
under which growth is achieved by
expanding the scale of operations.
Types Of Integration Strategy:

Forward
Vertical
Integration Integration
Backward
Strategy Horizontal
Integration

Fig. Types Of Integration

3
Strategy
 1.1 VERTICAL INTEGRATION:
Vertical integration is the process in which the production and/or
distribution of a product are controlled by several steps in a single
company in order to increase that company’s power in the
marketplace.

1.2 HORIZONTAL INTEGRATION

Also Known as Lateral Integration

Horizontal integration simply means

4 a strategy to increase your

market share by acquiring or merging with a similar company.

 Examples
Example 1: Example 2:
1.Apple Company
Processor
Processor

Software
Software

2.Ford Company
Tire
Tire Company
Company

Metal
Metal Company
Company

Glass
Glass Company
Company

3.Sun And Smart Comp. Relationship

Fig. Examples Of Strategic Management

 2.INTENSIVE STRATEGY
This Strategy Require Intensive Efforts To
Defeat Competitor’s Position By Improving
Company’s Existing Products

Types Of Intensive Strategy:

Market
Penetration

Intensive Market
Strategy Development

Product
Development
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Fig. Types Of Intensive Strategy

 2.1 MARKET PENETRATION
A market penetration strategy seeks to increase market share
for present products or services in present markets through
greater marketing efforts.

Market penetration includes increasing the number of salespersons,

increasing advertising or increasing publicity efforts.

Example:

Fig. Market Penetration For Different Cell Phones

 2.2 MARKET DEVELOPMENT
Market development involves introducing present
products or services into new geographic areas.
Example:
Coca-Cola wants to start their business in U.K.

But It Fails in U.K because Pepsi-Cola Or Soft-Drink Were Very

Famous.

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Then They launched their product in Russia and they got success.
 2.3 PRODUCT DEVELOPMENT
Product development is a strategy that seeks increased sales by
improving or modifying present products or services.
Product development usually entails large research and development
expenditures.
Example:
If one Company Starts from 10-15 Products and after some time
it reaches to 20-23 Products Then the Process for this
Development is below: In Short,

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Fig. Process For Product Development
 3.diversifivcation STRATEGY
Diversification is a strategy for company growth
through starting up businesses outside the company's
current products and markets .
Types Of Diversification Strategy:
Related
Diversificatio
n Strategies
Unrelated

Fig. Types Of Diversification Strategy

3.1 RELATED DIVERSIFICATION: This process that takes
place when a business expands its activities into product lines
that are similar to those it currently offers.
3.2 UNRELATED DIVERSIFICATION: Unrelated Diversification is a
form of diversification when the business
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adds new or unrelated
product and penetrates new markets.
 Advantage: Lesser the Risk of being in Single
Industry
Disadvantage: More Difficult to Manage
Example:
McDonald's starting of McCafe is an excellent example of
diversification .

By starting McCafe, McCafe is offering new products that were not

available in traditional McDonald's stores.

McCafe specializes in serving cafes, which attracts customers that

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usually don't come to McDonald's to eat Fast-food.
 4.defensive STRATEGY
Defensive Strategy is Marketing warfare strategy
designed to product:

Company’s Market
Share

Profitability

Product Positioning

Mind Share
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 GOAL:
The Goal of these strategies is
to hold onto your
position as the market leader,
fighting off competitors
who try to take away your
market share.

Types Of Defensive Strategy:

Joint
Venture
Defensive
Divestiture
Strategies
Liquidatio
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n
Fig. Types Of Defensive Strategy
 4.1 Joint Venture strategy
oint Venture Strategy is Popular strategy that occurs when two or more
ompanies form partnership for the purpose of capitalizing on some opportunity.
Joint
Joint Venture
Venture of
of Maruti
Maruti :: Suzuki
Suzuki
Examples :
Joint
Joint Venture
Venture of
of Tata
Tata :: DoCoMo
DoCoMo

4.2 Divestiture strategy

Selling a Division or a part of organization is called Divestiture.
This strategy is also used to rid some unprofitable activities in a Firm.
Example : IBM
IBM –– PCD(Lenovo)
PCD(Lenovo) Divestiture
Divestiture

4.3 Liquidation strategy

Selling all of Company’s assets in parts for their tangible worth is
called liquidation.
Example : Satyam
Satyam Scam
Scam
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