3. 3
These strategies are implemented when a company wants to expand its market reach or its product
lines. Such strategies require intensive efforts so as to improve the competitive position of the
company with the existing or new products. While implementing such strategies, Companies basically
wants to expand their scale of operations. Thus, if a firm enters a new market, develops a new product
or develops its own capabilities, then the firm is undertaking intensive strategies. These strategies
helps in enhancing the efficiency and effectiveness of the existing as well as the new products by
adding value to these products and therefore increasing sales and revenues of the firm. These
strategies also help in fast growth and thus making the company stronger and competitive.
5. 5
It includes offering wide sales promotion items, increasing the number of sales persons, rising
advertising expenditures, or extensive publicity efforts.
In market development more focus is given to establishing
presence in the new markets.
Market development strategy can be achieved in following
ways:
Product development strategy includes improving or modifying the
existing products so as to increase the sale of the existing products
and services.
6. Integration strategies also called management control strategy.
Integration strategies allow a firm to gain control over distributors, suppliers and competitors.
Integration strategy is used by the firms to increase market share, become more diversified, eliminating the cost of
developing new product and introducing it to the market, minimizing competition by taking over competitor’s
business, etc.
Types of integration strategies
7. 7
Vertical Integration is between two firms that are carrying on business
for the same product but at different levels of the production process. The
firm opts to continue the business, on the same product line as it was done
before integration. It is an expansion strategy used to gain control over
the entire industry. Example of this is Alibaba, a Chinese e-commerce
company, that owns the entire system of payment, delivery, search engine
and much more.
Forward Integration: If the company acquires control over distributors,
then it is downstream or forward integration.
Backward Integration: When the company acquires control over its
supplier, then it is upstream or backward integration.
The merger of two or more firms, which are engaged in the
same line of business and their activity level is also same; then
this is known as Horizontal Integration. The product may
include complementary product, by-product or any other related
product, competitive product or entering into the product’s
repairs, services, and maintenance section.
examples of horizontal integration is the acquisition of
Instagram by Facebook and Burger King by McDonald’s.
