8: Selecting Corporate-Level Strategies
- Page ID
- 10968
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- This page explores strategic considerations for firms, focusing on the Walt Disney Company as a case study. It covers industry concentration, vertical integration, types of diversification, and retrenchment strategies. Disney's transformation from cartoons to a global powerhouse exemplifies how diversification fuels growth through acquisitions like Pixar and Marvel.
- 8.2: Concentration Strategies
- This page discusses concentration strategies, including market penetration, market development, and product development, illustrating these concepts with examples like Coca-Cola's competition and Starbucks' expansion. It also explains horizontal integration and mergers, highlighting the acquisition of Strikeforce by the UFC as a means to enhance visibility in mixed martial arts.
- 8.3: Vertical Integration Strategies
- This page discusses vertical integration, where firms expand into different parts of the value chain to mitigate supplier or buyer power. It describes backward (e.g., Ford's supply chain control) and forward integration (e.g., Disney's retail stores), with examples like Apple's branded stores and eBay acquiring PayPal.
- 8.4: Diversification Strategies
- This page explores diversification strategies for firms, focusing on related versus unrelated diversification. It clarifies the need for testing industry attractiveness, entry costs, and potential benefits for successful diversification. Examples illustrate the advantages of related diversification, as seen with Disney, and the pitfalls of unrelated ventures, like Coca-Cola.
- 8.5: Strategies for Getting Smaller
- This page covers corporate-level strategy, particularly the circumstances under which firms might need to scale down or exit a business. It introduces key concepts such as retrenchment through layoffs, divestment for enhancing shareholder value, and liquidation as a final option. The content emphasizes the difficult choices executives must make to secure the long-term viability of their firms.
- 8.6: Portfolio Planning and Corporate-Level Strategy
- This page examines portfolio planning through the Boston Consulting Group (BCG) Matrix, focusing on how companies like General Electric categorize business units into cash cows, dogs, stars, or question marks based on market share and growth. It highlights the significance of portfolio planning along with its limitations, such as oversimplifying competition and hindering employee motivation, while also failing to uncover new opportunities.
- 8.7: Conclusion
- This page discusses corporate-level strategy, highlighting industry selection for firms and various growth strategies such as market penetration and product expansion. It covers vertical integration options for supply chain involvement and suggests diversification into related and unrelated industries. The chapter also addresses retrenchment and restructuring strategies, concluding with the importance of portfolio planning for managing participation across diverse industries.