This document discusses simultaneous combination strategies, which involve applying different strategies like expansion, growth, and retrenchment simultaneously across different business units. Some benefits include developing competitive advantages and protecting the firm from downturns in any single industry. Drawbacks include getting pulled in different directions and losing customer focus. Examples given are TTK Group in India, which diversified some business units while divesting others simultaneously as part of a restructuring plan. Another example is ITC, which pursued backward integration, diversification, and turnaround strategies across its various business units over different time periods.
2. COMBINATION STRATEGY
Combination strategies are a mixture of stability, growth,
expansion or retrenchment strategies which applied either simultaneously
or the same time in different business or sequentially at different times in
the same business. It is also called as mixed or hybrid strategy
3. TYPES OF COMBINATION STRATEGY
Combination
strategy
Simultaneous
strategy
Sequential
strategy
Combination of both
4. SIMULTANEOUS STRATEGY
Simultaneous combination strategy is mixture of grand strategies like
expansion, growth, retrenchment which is applied at the same time in its
different business simultaneously.
5. REASON FOR FOLLOWING
• Different products in different stages of life cycle.
• Different stages of Business cycle.
• Size of the firm
• Number of business.
6. BENEFITS
• Developing competitive advantage and achieving large market
share.
• The firm is comparatively more of protected from the impact of
downward trend in the industry.
• The firm can bear the pressure put by suppliers and solutions to
the complex challenges of real life business.
7. DRAWBACKS
• It leads to stuck in between different strategy at the same time by
concentrating more in any one strategy.
• This strategy results deviation in customer focus and customer
interest may ignored.
• This strategy is suitable for companies having diversified business
operations.
8. EXAMPLES
TTK group is a well-known company based in southern India, established in 1928. the
company own several brands like prestige, Kohinoor, kiwi, Sunlight, Lifebuoy, Lux, Ponds,
Brylcreem, Kellogg's, Horlicks etc.
The company adopted 10 year restructuring plan in 1997 with aim of focusing its core
structures and reducing the number of companies. The plan involves several combination
strategies simultaneously in it different business.
Product diversification under prestige brand and joint venture with US based household
company Sara Lee.
Join venture with LIG London In health care, formed LIG TTK (SSL TTK)
Divestment of several business like TTK chromate, Timeaids, Tortoys, TTK Chemicals and
cardboards
Strategic alliance with Indian overseas bank for offering range of services to NRI’s.
TTK group
9. ITC
• ITC is a diversified conglomerate having a varied portfolio consisting of
FMCG, hotels, paperboards and packaging, agribusiness and IT.
• The company adopted backward integration in 1925 in the packaging and
printing business.
• It diversified into hotels in 1975 and agribusiness in 1990.
• The company adopted turnaround strategy for the speciality paper
business, triveni tissues, after its acquisition and merger with
paperboard business, while financial service business was divested.
Today the TTK group spans 30 product categories with 7 group companies and a turnover that cross 30 Billion rupees. The group company products reach every continent of the world.TTK Prestige Ltd. is the flagship company of the group.
paperboard business
In 1990, ITC acquired Tribeni Tissues Limited
ITC acquired the paperboard manufac
ITC Bhadrachalam Paperboards Limiteturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore
software solutions company Polaris Financial Technology announced that it planned to hive off its products business into a separately listed company to be called Intellect Design Arena.
11.5% hike in share price
Implimentation partner
it would double its earning in the segment, currently around $100 million. The new entity will focus on universal banking, risk and treasury management, transaction banking and the insurance businesses.
Polaris Financial Technology will continue to run the services business focussed on solution services.