TYPES OF STRATEGIC MANAGEMENT

1. PREPARED BY: ANKIT PRAJAPATI T ypes o f S TRATEGIC M ANAGEMENT

2. Types of Strategies Integration Strategies Intensive Strategies Diversification Strategies Defensive Strategies 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 2

3. 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 3

4. 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 V ERTICAL I NTEGRATION : 1.2 H ORIZONTAL I NTEGRATION Horizontal integration simply means a strategy to increase your market share by acquiring or merging with a similar company. 4 Also Known as Lateral Integration

5. 5 Examples Example 1: Example 2: 1.Apple Company Processor Software 2. Ford Company Tire Company Metal Company Glass Company Fig. Examples Of Strategic Management 3 . Sun And Smart Comp. Relationship

6. 2.INTENSIVE STRATEGY This Strategy Require Intensive Efforts To Defeat Competitor’s Position By Improving Company’s Existing Products Types Of Intensive Strategy: Fig. Types Of Intensive Strategy 6

7. 7 2.1 M ARKET P ENETRATION A 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:

8. 8 2.2 M ARKET D EVELOPMENT Market 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.

9. 9 2.3 P RODUCT D EVELOPMENT Product 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 I n S hort, 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:

10. 10 3.diversifivcation STRATEGY Diversification 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

11. 11 Advantage: Lesser the Risk of being in Single Industry Disadvantage: More Difficult to Manage Example: 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.

12. 12 4.defensive STRATEGY Defensive Strategy is Marketing warfare strategy designed to product: Company’s Market Share Profitability Mind Share Product Positioning

13. 13 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

14. 14 4.1 J oint V enture s trategy Joint 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 D ivestiture s trategy Selling 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 L iquidation s trategy Selling all of Company’s assets in parts for their tangible worth is calle d liquidation. Example : Satyam Scam