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Strategy Classification

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99 views12 pages

Strategy Classification

Uploaded by

Seema Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Level of Strategies

Corp
A Large Company Strategy

Business Strategy

Functional Level

Operational Level

Copyright © 2009 Pearson Education, Inc. Ch 5 -1


Publishing as Prentice Hall
Types of Strategies

Forward
Integration

Vertical Backward
Integration Integration
Strategies

Horizontal
Integration

Copyright © 2009 Pearson Education, Inc. Ch 5 -2


Publishing as Prentice Hall
Types of Strategies

Market
Penetration

Intensive Market
Strategies Development

Product
Development

Copyright © 2009 Pearson Education, Inc. Ch 5 -3


Publishing as Prentice Hall
Types of Strategies

Related
Diversification

Diversification
Strategies

Unrelated
Diversification

Copyright © 2009 Pearson Education, Inc. Ch 5 -4


Publishing as Prentice Hall
Types of Strategies

Retrenchment

Defensive Divestiture
Strategies

Liquidation

Copyright © 2009 Pearson Education, Inc. Ch 5 -5


Publishing as Prentice Hall
2007 Examples

Forward Southwest Airlines selling tickets


Integration through Galileo

Backward Hilton Hotels could acquire a large


Integration furniture manufacturer

Horizontal Huntington Bancshares and Sky


Integration Financial Group merged

Copyright © 2009 Pearson Education, Inc. Ch 5 -6


Publishing as Prentice Hall
2007 Examples

McDonald’s selling millions of


Market
“Shrek the Third” items to a
Penetration healthier image

Market Burger King opened its first


Development restaurant in Japan

Google introduced “Google


Product
Presents” to compete with
Development PowerPoint

Copyright © 2009 Pearson Education, Inc. Ch 5 -7


Publishing as Prentice Hall
2007 Examples

Related MGM Mirage is opening its first non-


Diversification casino luxury hotel

Unrelated
Ford Motor Company entered the
Diversification industrial bank business

Discovery Channel closed 103 mall-


Retrenchment based and stand-alone stores

Copyright © 2009 Pearson Education, Inc. Ch 5 -8


Publishing as Prentice Hall
2007 Examples

Whirlpool sold its struggling Hoover


Divestiture
floor-care business to Techtronic
Industries

Follow Me Charters sold all of its


Liquidation assets and ceased doing business

Copyright © 2009 Pearson Education, Inc. Ch 5 -9


Publishing as Prentice Hall
Michael Porter’s Generic Strategies

Cost Leadership Strategies


(Low-Cost & Best-Value)

Differentiation Strategies

Focus Strategies
(Low-Cost Focus &
Best-Value Focus)

Copyright © 2009 Pearson Education, Inc. Ch 5 -10


Publishing as Prentice Hall
First Mover Advantages

 Benefits a firm may achieve by entering a


new market or developing a new product or
service prior to rival firms

Copyright © 2009 Pearson Education, Inc. Ch 5 -11


Publishing as Prentice Hall
Outsourcing
Business-Process Outsourcing
(BPO)

 Companies taking over the functional


operations of other firms

Copyright © 2009 Pearson Education, Inc. Ch 5 -12


Publishing as Prentice Hall

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