*PREPARED BY:ANKIT PRAJAPATI

Types of STRATEGIC

MANAGEMENT

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Types of Strategie

s

Integration

Strategies

IntensiveStrategie

s

Diversification

Strategies

DefensiveStrategies

1. Vertical Integration

2.Horizontal Integration

1.Related

Forward

Backward

1.Market Penetration

2.Market Development

3.Product Development

2.Unrelated

1.Joint Venture

2.Divestiture

3.Liquidation

Fig. Complete Chart Of Strategic Management

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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:

Fig. Types Of Integration Strategy

IntegrationStrategy

VerticalIntegration

Forward

BackwardHorizontal Integration

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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.

1.1 VERTICAL INTEGRATION:

1.2 HORIZONTAL INTEGRATION

Horizontal integration simply means a strategy to increase your market share by acquiring or merging with a similar company.

Also Known as Lateral Integration

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Examples Example 1: Example 2:

1.Apple CompanyProcessor

Software

2.Ford Company

Tire Company

Metal CompanyGlass Company

Fig. Examples Of Strategic Management

3.Sun And Smart Comp. Relationship

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2.INTENSIVE STRATEGY

This Strategy Require Intensive Efforts To Defeat Competitor’s Position By ImprovingCompany’s Existing ProductsTypes Of Intensive Strategy:

Fig. Types Of Intensive Strategy

IntensiveStrategy

Market Penetration

Market Developme

nt

Product Developme

nt

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2.1 MARKET PENETRATIONA 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.

Fig. Market Penetration For Different Cell Phones

Example:

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2.2 MARKET DEVELOPMENTMarket development involves introducing

present products or services into new geographic areas.

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.

Example:

Then They launched their product in Russia and they got success.

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2.3 PRODUCT DEVELOPMENTProduct 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.

Fig. Process For Product Development

In Short,

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:

Example:

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3.diversifivcation STRATEGYDiversification is a strategy for company growth through starting up businesses outside the company's current products and markets .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 product and penetrates new markets.

Fig. Types Of Diversification Strategy

Diversification Strategies

Related

Unrelated

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Advantage: Lesser the Risk of being in Single Industry

Disadvantage: More Difficult to ManageExample:

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 usually don't come to McDonald's to eat Fast-food.

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4.defensive STRATEGYDefensive Strategy is Marketing warfare strategy designed to product:

Company’s Market Share

Profitability

Mind Share

Product Positioning

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Types Of Defensive Strategy:

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.

Fig. Types Of Defensive Strategy

Defensive Strategies

Joint Venture

Divestiture

Liquidation

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4.1 Joint Venture strategyJoint Venture Strategy is Popular strategy that occurs when two or more

Companies form partnership for the purpose of capitalizing on some opportunity.

Examples : Joint Venture of Maruti : Suzuki Joint Venture of Tata : DoCoMo

4.2 Divestiture strategySelling 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