3. 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:
Integration
Strategy
Vertical
Integration
Forward
Backward
Horizontal
Integration
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Fig. Types Of Integration Strategy
4. 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
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Horizontal integration simply means a strategy to increase your
market share by acquiring or merging with a similar company.
5. Examples
Example 1:
Example 2:
1.Apple Company
Processor
Software
2.Ford Company
Tire Company
Metal Company
Glass Company
3.Sun And Smart Comp. Relationship
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Fig. Examples Of Strategic Management
6. 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
Strategy
Market
Development
Product
Development
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Fig. Types Of Intensive Strategy
7. 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:
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Fig. Market Penetration For Different Cell Phones
8. 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.
9. 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
10. 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
Diversification
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 adds new or unrelated
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product and penetrates new markets.
11. 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.
12. 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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13. 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
Strategies
Divestiture
Liquidation
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Fig. Types Of Defensive Strategy
14. 4.1 Joint Venture strategy
Joint Venture Strategy is Popular strategy that occurs when two or more
Companies form partnership for the purpose of capitalizing on some opportunity
Joint Venture of Maruti : Suzuki
Examples :
Joint Venture of Tata
: 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 – PCD(Lenovo) Divestiture
4.3 Liquidation strategy
Selling all of Company’s assets in parts for their tangible worth is
called liquidation.
Example :
Satyam Scam
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