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Types of Strategies

Forward
Integration

Vertical Backward
Integration Integration
Strategies

Horizontal
Integration

Copyright 2011 Pearson Education, Inc. Ch 5 -1


Publishing as Prentice Hall
Vertical Integration Strategies
Forward Gaining ownership or increased
Integration control over distributors or retailers

Backward Seeking ownership or increased


Integration control of a firms suppliers

Horizontal Seeking ownership or increased


Integration control over competitors

Copyright 2011 Pearson Education, Inc. Ch 5 -2


Publishing as Prentice Hall
Types of Strategies

Market
Penetration

Intensive Market
Strategies Development

Product
Development

Copyright 2011 Pearson Education, Inc. Ch 5 -3


Publishing as Prentice Hall
Intensive Strategies
Seeking increased market share for
Market present products or services in
Penetration present markets through greater
marketing efforts

Market Introducing present products or


Development services into new geographic areas

Seeking increased sales by


Product
improving present products or
Development services or developing new ones

Copyright 2011 Pearson Education, Inc. Ch 5 -4


Publishing as Prentice Hall
Types of Strategies

Related
Diversification

Diversification
Strategies

Unrelated
Diversification

Copyright 2011 Pearson Education, Inc. Ch 5 -5


Publishing as Prentice Hall
Diversification Strategies

Related Adding new but related products or


Diversification services

Unrelated
Adding new, unrelated products or
Diversification services

Copyright 2011 Pearson Education, Inc. Ch 5 -6


Publishing as Prentice Hall
Types of Strategies

Retrenchment

Defensive Divestiture
Strategies

Liquidation

Copyright 2011 Pearson Education, Inc. Ch 5 -7


Publishing as Prentice Hall
Defensive Strategies
Regrouping through cost and asset
Retrenchment reduction to reverse declining sales
and profit

Divestiture Selling a division or part of an


organization

Selling all of a companys assets, in


Liquidation parts, for their tangible worth

Copyright 2011 Pearson Education, Inc. Ch 5 -8


Publishing as Prentice Hall

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