CORPORATE STRATEGY

i n c l u d i n g d i v e r s i fi c a ti o n a n d v e r ti c a l
i n t e g r a ti o n

Submitted To: Prof. Deepak Kapur

By: Divya Anand
 WHAT IS
CORPORATE
STRATEGY?

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 CORPORATE STRATEGY
• Corporate level strategies are basically about the choice
of direction that a firm adopts in order to achieve its
objectives.

• Corporate strategy is essentially a blueprint for the

growth of the firm.

• The corporate strategy sets the overall direction for the

organization to follow.

• It also spells out the extent, pace and timing of the firm’s
growth.

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THE IMPORTANCE OF CORPORATE STRATEGY

Allocates Company Resources

Establishes Expectations

Improves Competitive Position

Adds Shareholder Value

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FOUR KEY COMPONENTS OF CORPORATE
STRATEGY
Visioning

Objective Setting

Resource Allocation

Prioritization or Strategic Tradeoffs

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 THREE
DIMENSIONS OF
CORPORATE
STRATEGY

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DIFFERENT TYPES
OF CORPORATE
STRATEGY

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 GROWTH STRATEGIES

Growth strategies aim to achieve considerable business

growth in the areas of revenue, market share,
penetration, etc. This can be achieved either through
concentration where the company is still focusing on its
core business and builds it out or through diversification
where a company decides to diversify based on the
number of approaches that are described in detail below.

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 Concentration Diversification

• Vertical Growth • Concentric

GROWTH STRATE
• Horizontal Growth GIES • Conglomerate

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 STABILITY STRATEGIES
Stability strategies do not have growth and new
business development in their focus but rather are
geared towards getting “more” out of the existing
business (i.e. profitability-driven-strategy) or “stay-
as-it-is” (i.e. Status-quo strategy) because the current
situation already works well for the organization.

Status-quo
Profitability-driven

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RETRENCHMENT STRATEGIES
This set of strategies is almost the opposite of
status-quo or growth strategies. It is a defensive
strategy where the main objective is to change
the negative trajectory and improve the
company’s position either through aggressive
changes or “cutting off” the parts that pull it
down.

Turnaround

Divestiture

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 RE-INVENTION STRATEGIES
• Re-invention strategies often include taking the existing
industries/businesses which have not changed for decades and re-
inventing them, often with the support of new technologies. Here one
can distinguish between evolutionary strategies and revolutionary
strategies.

Evolutionary

Revolutionary

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 REFERENCES
• https://www.slideserve.com/tyler-mejia/corporate-st
rategy-vertical-integration-and-diversification
• https://www.slideshare.net/nishikantwar/corporate-l
evel-strategies-109410875
• https://www.ottawa.edu/online-and-evening/blog/n
ovember-2020/four-key-components-of-corporate-str
ategy

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THANK YOU

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