Assignment 2 {Strategies in Action}

8/3/2019 Assignment 2 {Strategies in Action}

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Submitted by GUL E FARIS ZAMAN

Strategies in Action

Types of Strategies

1. Vertical Integration Strategies

2. Intensive Strategies

3. Diversification Strategies

4. Defensive Strategies

1. Vertical Integration Strategiesa) Forward Integration

b) Backward Integration

c) Horizontal Integration

Examples of Forward Integration

1 Gul-e-Ishfaq Coaches, that company spread agents in different places.

2 TCS service, it hires divos.

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3 Bata shoes have their own service centers all over the Pakistan

4 Ufone, jazz franchises are examples of forward integration.

5 Doll maker & mail order firm, Pleasant Co., opened a retail store in Manhattan

Examples of Backward Integration

1 In 2003,McDonalds acquired a paper cup producer

2 Engro Chemicals that buys a dairy farm for milk.

3 Wall Mart acquired different suppliers for own retail business.

4 Sugar mills acquire the land for sugarcane.

5 Firms produced Tobacco and used in Pakistan.

Examples of Horizontal Integration

1 Geo media Company acquired Newspaper and TV channels, magazines etc.

2 AT&T acquire T-Mobile USA for a whopping $39 billion in cash and stock.

3 In 2003,Callaway Golf recently acquired Top-Flite Golf Company

4 Outride integrated with Google for web search in 2001.

5YouTube integrated with you tube in 9th October 2006.

2. Intensive Strategies

d) Market Penetration

e) Market Development

f)Product Development

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Examples of Market Penetration

1 Quershi Industry increases the number of sales person in Ramazan month.

2 Hollywood industry increase 40% the advertising expenditure.

3 SABMiller Plc spent $500 million in 2003 on marketing its Miller brands ofbeer.

4 Pepsi increase publicity efforts. Give Scholarship to students etc & give Manof the match awards in different games.

5 Royal Challengers team promotes the Mc Donalds.

Examples of Market Development

1 The US postal service now offer Stamps &Postage via the internet. Stamps nowobtained online fromwww.stamps.com

2 E.Stamps corporation & Neopost, create their own digital stamps.

3 Hazara University campus of Havalian and now In Haripur.

4 Ms Office and Windows which are old technology, transferred to under develop

country.5 In products, China capture the whole world by market development. In Pakistan

Zong franchises are spreading.

Examples of Product Development

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1 Nokia develop their product after some period.

2 Computers examples.{P2,P3,P4 etc)

3 Computer Monitors and now LCDs.

4 Gillette example {simple then convert into also in electric and laser}.

5 Computer printer DOT matrix and now Laser printer.

3. Diversification Strategies

g) Related Diversification

h) Unrelated Diversification

Examples of Related Diversification

Quershi Industry Natural Products

Proctor and Gamble

Uniliever

Johnson & Johnson

Walt Disney

1 Proctor & GambleHaircare Pantene, Head & Shoulders, Clairol

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Household cleaning/care Flash, Febreze, FairyLaundry Daz, Ariel, Fairy, BouncePaper Bounty, Pampers, AllwaysBeauty Oil of Olay, Max FactorBeverages Sunny DelightSnacks Pringles Petfood Iams

2 Walt DisneyTheme Parks, Movie Production, Videos, Childrens apparel,Toys, TV Broadcasting

3 PTCL Landline diversify to broadband and Ptcl Evo

4 Google diversify to Youtube

5 Nestle diversify Nedo milk & chocolate

Examples of Unrelated Diversification

Nike shoes 7 body spry

Angro chemical & olphers

Virgin Group Limited is a British branded venture

capitalconglomerate organisation

1 Virgin Travel (& Virgin Holidays)

2 Virgin Retail (Music & Entertainment)

3 Virgin Investments (computer products, promotional blimps, propertydevelopment)

4 Virgin Hotels Group (clubs & hotels in UK, Spain & Virgin Islands)

5 Virgin Communications (Virgin Interactive Entertainment, Publishing, Radio,TV)

4. Defensive Strategies

i) Retrenchment

j) Divestiture

k) Liquidation

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Examples of Retrenchment

1 Coca Cola going back to Classic Coke after introducing "New Coke" in the1980's.

2 Habib Bank Limited, fired the employees due manual to computerize shift.

3 America West Airlines closing its hub at Columbus, Ohio and laying off 390employees.

4 Circuit City Stores Inc. of Richmond, 62 stores shut down in Canada

5 WAPDA is divided in to different department.

Examples of Divestiture

Parent Company Divested Company

1 Compaq Computer Corporation AltaVista

2 IBM Networking Technology

3 Kohlberg Kravis Roberts Gillette

4 Microsoft Sidewalk entertainment

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5 Harward Industries,Inc Kingston-Warren

Examples of Liquidation

1 In April 2011,Tarbella Cotton Mill, of Khalabat town ship sector 4, Haripur

2 In 1985, KAWASAKI Mills of Khalabat town ship sector 4, Haripur

3 Kohinoor rice Mills Limited, Lahore {Liquidation date 28/08/2001}

4 Larkana Sugar Mills (pvt limited) in Liquidation

5 NIPPON BOBBIN Company Pakistan (pvt limted) {Liquidation date Sep2001}KARACHI

The END

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Assignment 2 {Strategies in Action}