Business Strategies Examples In Strategic Management
Market penetration occurs when a company penetrates a market where current products already exist. Growth platforms are specially named initiatives that have been selected together with a company to drive revenue and profit growth. It is really an aggressive and often risky growing method.
This tactic typically involves high competitiveness, a strong brand, or both, as many market penetrations require current incumbents to actively take market share. The strategy is better achieved by identifying and meeting unique niche needs in a specific type of user. Market development strategy involves expanding the potential market through new users or new applications for each product.
New users can be interpreted as new geographic segments, new demographic segments, new institutional segments or new psychographic segments. Market research is crucial in development strategies. The classic example of consolidation is without a doubt Bell Atlantic’s merger with GTE, which resulted in Verizon Communications.
In business, consolidation means the acquisitions and mergers of many smaller companies into larger ones for monetary gain. Consolidating into YRC Worldwide, the combined company lost significant value to both Yellow Freight and Roadway Corp. Not all brand new name mergers are a winner.
All stakeholders, both in organizations, must be consulted, and agreements usually take many years to conclude. Because costs are included, consolidation is an extremely high-level strategic decision. Strategically managing these kinds of changes is difficult and rife with conflict.
Cultural conflicts between two other companies are usually not uncommon, as the mission, vision and values of the people and groups within them are likely to differ. Global strategy, as defined in operational terms, is the organization’s strategic guide to pursuing different geographic markets. Mismanagement of these processes can reduce the potential synergistic benefits and reduce the effectiveness of the new strategy plan.
Differentiation strategies also allow for economies of scale, either by meeting different needs in different markets with the same number of products, or by developing new items, depending on the needs and consumption habits of the new market. Explain the idea of a global strategy in the context of international business in combination with a globalized economy However, globalization will not be limited to cost leadership. For example, Coca Cola tastes different based on the country it is purchased from due to variations in local preferences.
Differentiation as part of a global strategy typically requires localization as companies must adapt to consumer tastes to compete in the new country. The alliance is basically a collaboration or collaboration that strives for any synergy where each partner hopes that the benefits of your alliance will be greater than those of individual efforts. A strategic alliance is basically a partnership where everyone expects the benefit of collaboration to outweigh the cost of individual efforts.
Cooperative sourcing is basically a collaboration or negotiation between other companies with similar business processes. Partners can provide the strategic alliance with resources such as products, distribution routes, production capacity, project financing, capital goods, knowledge, expertise or IP. This practice is particularly common in IT-oriented industries due to low to no variable costs, e.g.
In order to save costs, the competitor with a really good production capacity can involve the business process with the other competitors. banking. Since all negotiating parties can be outsourcers or insourcers, the primary challenge within this partnership is to find both a stable coalition and the company with a really good production function. High switching costs, costs for looking for potential cooperative sourcers and negotiating can lead to inefficient solutions.