Corporate Strategy
Concentration
Apple Inc is a corporation that uses the CONCENTRATION corporate level strategy in its production of personal computers, tablet computers and music equipment. Its main offices are located in Cupertino, California. Apple Inc mainly produces products aimed at a particular market niche, as can be appreciated from the pricing of their products; most of the target customers are those who prefer exclusive, high end and expensive products. Further the unique nature of its products and distribution system targets a given group. All of its products utilize unique platforms, including the Ipod, which is configured in a manner that ensures exclusivity in its usage. The, uniqueness of the products it provides, as well as the fact that in its short history there has never been a departure from its set of products is a clear demonstration of the concentration strategy.
Growth
Wal-Mart Stores is a retail corporation that runs a chain of discount warehouse and departmental stores in over 15 countries, with its headquarters in Bentonville Arkansas. Essentially, it has a chain of more than 8500 stores which are operated under almost 55 different trade names. Wal-Mart Stores therefore, uses the GROWTH corporate level strategy, concentrating on not just geographic expansion, but also product development. This strategy is clearly evident from the fact that Wal-Mart has grown from 1 store to the more than 8500 indicated above. Further, the differentiation in the number of products it offers also serves to highlight the application of the growth strategy in earnest (Dess, Lumpkin, & Taylor, 2004).
Integration
Warner Brothers, is a media industry company concerned with the production of motion pictures, and has its headquarters in Burbank California. The company utilizes the INTEGRATION strategy, and specifically, the vertical integration approach, not only in its production of the motion pictures, but also when it comes to distribution. The company actually owns half of the television network CW, through which it is then able to distribute motion pictures it has produced; a good example being the Smallville series. This shows vertical integration, as it has opted to undertake activities that would have otherwise been provided by other business channels, more so distribution (forward integration).
Diversification
Essar Group, is a multinational corporation that has its headquarters in Mumbai India, the group essentially diversifies into a number of varied products, ranging from steel, energy, communications, construction, power and logistics amongst others. The company uses the DIVERSIFICATION strategy, as evidenced by the fact that not only did the company start off as a construction company but it has grown into a conglomerate, with interests in numerous other unrelated industries. Seemingly, this strategy of expanding into previously unrelated fields is still ongoing, implying a corporate level strategy of expanding into products that in no way relate to their already existing products, a theme which is in line with the diversification strategy.
Investment Reduction
Iberdrola, is a multinational company based in Bilbao Spain, that concentrates on the provision of electric utilities. Due to a number of problems in its recent history, the company has resorted to adopting the INVESTMENT REDUCTION strategy. The strategy to reduce investment to about €3.5 billion per year, until 2014, was mainly aimed at providing and releasing funds for usage in the growth and expansion of the company in areas such as networks, renewables and other liberalized activities, which may assist in the growth aforementioned. The company therefore, has adopted an investment reduction strategy in order to facilitate growth in other areas (Gerry, Scholes, & Whittington, 2008).
References
Dess, G., Lumpkin, G., Taylor, M. (2004). Strategic Management: Creating Competitive Advantages. McGraw-Hill College.
Gerry, J., Scholes, K., & Whittington, R. (2008). Exploring Corporate Strategy. Financial Times, Prentice Hall.
Originally posted 2015-03-14 10:15:11.
