Alternative Strategies
Running head: “TYPES OF ALTERNATIVE STRATEGIES”
Types of Alternative Strategies
In APA Style
Chikita Martin
Herzing University
Strategic Management
Alternative Strategies
There are 11 alternative strategies; forward integration which means gaining ownership or increased control over distributors and retailers, backward integration which is seeking ownership or increased control of a firm’s suppliers, horizontal integration which is seeking ownership or increased control over competitors, market penetration which is seeking increased market share for present products or services in present markets through greater marketing efforts, product development which is seeking increased sales by improving present products or services or developing new ones, related diversification which is adding new but related products or services, unrelated diversification which is adding new, unrelated products or services, retrenchment which is regrouping through cost and asset reduction to reverse declining sales and profit, divestiture which is selling a division or part of an organization, and liquidation which is selling all of a company’s assets, in parts, for their tangible worth.
Integration Strategies: Forward, Backward, & Horizontal Integration “There are 6 scenarios in which forward integration can be used effectively for an organization:” (David, 2011) 1. When your current distributor is too expensive, unreliable and not meeting the needs of your company. 2. When quality distributors are limited. 3. When an organization competes’ in an industry that is constantly growing and expected to stay updated which is a factor that reduces the organization’s chance to diversify if put in the position. 4. When an organization has the capital and human resources to manage the process of distributing their own products and services. 5. When the advantages of stable production is high considering the fact that the organization can predict the demand of
Types of Alternative Strategies
In APA Style
Chikita Martin
Herzing University
Strategic Management
Alternative Strategies
There are 11 alternative strategies; forward integration which means gaining ownership or increased control over distributors and retailers, backward integration which is seeking ownership or increased control of a firm’s suppliers, horizontal integration which is seeking ownership or increased control over competitors, market penetration which is seeking increased market share for present products or services in present markets through greater marketing efforts, product development which is seeking increased sales by improving present products or services or developing new ones, related diversification which is adding new but related products or services, unrelated diversification which is adding new, unrelated products or services, retrenchment which is regrouping through cost and asset reduction to reverse declining sales and profit, divestiture which is selling a division or part of an organization, and liquidation which is selling all of a company’s assets, in parts, for their tangible worth.
Integration Strategies: Forward, Backward, & Horizontal Integration “There are 6 scenarios in which forward integration can be used effectively for an organization:” (David, 2011) 1. When your current distributor is too expensive, unreliable and not meeting the needs of your company. 2. When quality distributors are limited. 3. When an organization competes’ in an industry that is constantly growing and expected to stay updated which is a factor that reduces the organization’s chance to diversify if put in the position. 4. When an organization has the capital and human resources to manage the process of distributing their own products and services. 5. When the advantages of stable production is high considering the fact that the organization can predict the demand of
References: David, Fred R. (2011). Strategic Management Concepts and Cases. Upper Saddle River: Pearson Education, Inc