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Integration strategies
Corporate Level Strategies
Prepared By
Kindly restrict the use of slides for personal purpose.
Please seek permission to reproduce the same in public...
Integration strategies
Integration strategies
• It is done where the
company attempts to
widen the scope of its
business definition in
such a man...
Integration strategies
• It is combing activities
related to the present
activity of a firm. Such a
combination may be don...
Vertical Integration
• When pursuing a vertical
integration strategy, a
firm gets involved in new
portions of the value
ch...
Examples of Vertical Integration
• Oil companies like
ConocoPhillips can be
involved in all stages of
the value chain, inc...
Forward Integration
• When pursuing a vertical
integration strategy, a
firm gets involved in new
portions of the value
cha...
Examples of Forward Integration
• Disney has pursued
forward vertical
integration by operating
more than three hundred
ret...
Backward Integration
• When pursuing a vertical
integration strategy, a
firm gets involved in new
portions of the value
ch...
Examples of Backward Integration
• Ford Motor Company
created subsidiaries that
provided key inputs to
vehicles such as ru...
Horizontal Integration
• It is a type of
integration strategies
pursued by a company
in order to strengthen
its position i...
Example of Horizontal Integration
• One example of
horizontal integration
is what happened
between the
infamous Daimler
Be...
Acquisition
• An acquisition takes
place when one
company purchases
another company.
Generally, the
acquired company is
sm...
Examples of Acquisition
• Disney was much
bigger than Miramax
and Pixar when it
joined with these
firms in 1993 and
2006, ...
Merger
• A merger is a combination
of two or more
organizations in which one
acquires the assets and
liabilities of the ot...
Examples of Merger
• Big oil got even bigger in
1999, when Exxon and
Mobil signed a $81
billion agreement to
merge and for...
Strategic Alliance
• A strategic alliance is a
cooperative arrangement
between two or more
organizations that does
not inv...
Examples of Strategic Alliance
• In June 2011,Twitter
announced the formation
of a strategic alliance with
Yahoo! Japan. T...
Integration strategies  - corporate level strategies - Strategic Management - Manu Melwin Joy
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Integration strategies - corporate level strategies - Strategic Management - Manu Melwin Joy

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It is done where the company attempts to widen the scope of its business definition in such a manner that it results in serving the same set of customers. The alternative technology of the business undergoes a change.

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Integration strategies - corporate level strategies - Strategic Management - Manu Melwin Joy

  1. 1. Integration strategies Corporate Level Strategies
  2. 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
  3. 3. Integration strategies
  4. 4. Integration strategies • It is done where the company attempts to widen the scope of its business definition in such a manner that it results in serving the same set of customers. The alternative technology of the business undergoes a change.
  5. 5. Integration strategies • It is combing activities related to the present activity of a firm. Such a combination may be done through value chain. A value chain is a set of interrelated activity performed by an organization right from the procurement of basic raw materials down to the marketing of finished products to the ultimate customers.
  6. 6. Vertical Integration • When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.
  7. 7. Examples of Vertical Integration • Oil companies like ConocoPhillips can be involved in all stages of the value chain, including crude oil exploration, drilling for oil, shipping oil to refineries, refining crude oil into products such as gasoline, distributing fuel to gas stations, and operating gas stations.
  8. 8. Forward Integration • When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.
  9. 9. Examples of Forward Integration • Disney has pursued forward vertical integration by operating more than three hundred retail stores that sell merchandise based on Disney’s characters and movies. This allows Disney to capture profits that would otherwise be enjoyed by another store.
  10. 10. Backward Integration • When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.
  11. 11. Examples of Backward Integration • Ford Motor Company created subsidiaries that provided key inputs to vehicles such as rubber, glass, and metal. This approach ensured that Ford would not be hurt by suppliers holding out for higher prices or providing materials of inferior quality.
  12. 12. Horizontal Integration • It is a type of integration strategies pursued by a company in order to strengthen its position in the industry. A corporate that implements this type of strategy usually mergers or acquires another company that is in the same production stage.
  13. 13. Example of Horizontal Integration • One example of horizontal integration is what happened between the infamous Daimler Benz and Chrysler merger (car developing, manufacturing and retailing).
  14. 14. Acquisition • An acquisition takes place when one company purchases another company. Generally, the acquired company is smaller than the firm that purchases it.
  15. 15. Examples of Acquisition • Disney was much bigger than Miramax and Pixar when it joined with these firms in 1993 and 2006, respectively, thus these two horizontal integration moves are considered to be acquisitions.
  16. 16. Merger • A merger is a combination of two or more organizations in which one acquires the assets and liabilities of the other in exchange for shares or cash or both the organization are dissolved and the assets and liabilities are combined and new stock is issued.
  17. 17. Examples of Merger • Big oil got even bigger in 1999, when Exxon and Mobil signed a $81 billion agreement to merge and form Exxon Mobil. ExxonMobil remains the strongest leader in the oil market, with a huge hold on the international market and dramatic earnings.
  18. 18. Strategic Alliance • A strategic alliance is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity.
  19. 19. Examples of Strategic Alliance • In June 2011,Twitter announced the formation of a strategic alliance with Yahoo! Japan. The alliance involves relevant Tweets appearing within various functions offered by Yahoo! Japan.

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