Submitted by GUL E FARIS ZAMAN

Strategies in Action
Types of Strategies
1.
2.
3.
4.

Vertical Integration Strategies

Intensive Strategies
Diversification Strategies
Defensive Strategies

1. Vertical Integration Strategies

a) Forward Integration
b) Backward Integration
c) Horizontal Integration

FBH oa V rc w eki zr a ot i c a l I n t e g r a t i o n
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Examples of Forward Integration

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Gul-e-Ishfaq Coaches, that company spread agents in different places.

TCS service, it hires divos.
Bata shoes have their own service centers all over the Pakistan
Ufone, jazz franchises are examples of forward integration.
Doll maker & mail order firm, Pleasant Co., opened a retail store in Manhattan

Examples of Backward Integration

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In 2003, McDonalds acquired a paper cup producer

Engro Chemicals that buys a dairy farm for milk.
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Wall Mart acquired different suppliers for own retail business.

Sugar mills acquire the land for sugarcane.
Firms produced Tobacco and used in Pakistan.

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Geo media Company acquired Newspaper and TV channels, magazines etc.

AT&T acquires T-Mobile USA for a whopping $39 billion in cash and stock.
In 2003, Callaway Golf recently acquired Top-Flite Golf Company
Outride integrated with Google for web search in 2001.
YouTube integrated with you tube in 9th October 2006.

Examples of Horizontal Integration

2. Intensive Strategies
d) Market Penetration
e) Market Development
f) Product Development

PM r oa rd I k un e ct t et n s i v e
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Examples of Market Penetration
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Quershi Industry increases the number of sales person in Ramazan month.

Hollywood industry increase 40% the advertising expenditure.
SABMiller Plc spent $500 million in 2003 on marketing its Miller brands of
beer.
Pepsi increase publicity efforts. Give Scholarship to students etc & give Man
of the match awards in different games.
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Royal Challengers team promotes the Mc Donalds.

Examples of Market Development

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The US postal service now offers Stamps &Postage via the internet. Stamps
now obtained online from www.stamps.com
E.Stamps corporation & Neopost, create their own digital stamps.
Hazara University campus of Havalian and now In Haripur.
Ms Office and Windows which are old technology, transferred to under develop
country.
In products, China captures the whole world by market development. In
Pakistan Zong franchises are spreading.

Examples of Product Development

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Nokia develop their product after some period.

Computers examples.{P2,P3,P4 etc)
Computer Monitors and now LCDs.
Gillette example {simple then convert into also in electric and laser}.
Computer printer DOT matrix and now Laser printer.

3. Diversification Strategies
g) Related Diversification
h) Unrelated Diversification

RU en lDr a e ti l ev a de t er ds i f i c a t i o n
D i v e r S s it f r i ac ta e t ig o i ne s
Examples of Related Diversification
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Quershi Industry Natural Products

Proctor and Gamble
Uniliever
Johnson & Johnson
Walt Disney

Proctor & Gamble

Haircare Pantene, Head & Shoulders, Clairol
Household cleaning/care Flash, Febreze, Fairy
Laundry Daz, Ariel, Fairy, Bounce
Paper Bounty, Pampers, Allways
Beauty Oil of Olay, Max Factor
Beverages Sunny Delight
Snacks Pringles Petfood Iams

Walt Disney
Theme Parks, Movie Production, Videos, Childrens apparel,
Toys, TV Broadcasting

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PTCL Landline diversify to broadband and Ptcl Evo

Google diversify to Youtube
Nestle diversify Nedo milk & chocolate

Examples of Unrelated Diversification

Nike shoes 7 body spry
Angro chemical & olphers

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Virgin Group Limited is a British branded venture

capital conglomerate organisation
Virgin Travel (& Virgin Holidays)
Virgin Retail (Music & Entertainment)
Virgin Investments (computer products, promotional blimps, property
development)
Virgin Hotels Group (clubs & hotels in UK, Spain & Virgin Islands)
Virgin Communications (Virgin Interactive Entertainment, Publishing, Radio,
TV)

4. Defensive Strategies
i) Retrenchment
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j) Divestiture
k) Liquidation

DLR ie q v t urD e e is edn t fiac te th n s i v e

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Examples of Retrenchment
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Coca Cola going back to Classic Coke after introducing "New Coke" in the
1980's.
Habib Bank Limited, fired the employees due manual to computerize shift.
America West Airlines closing its hub at Columbus, Ohio and laying off 390
employees.
Circuit City Stores Inc. of Richmond, 62 stores shut down in Canada

WAPDA is divided in to different department.

Examples of Divestiture
Parent Company
Divested Company
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Compaq Computer Corporation

IBM
Kohlberg Kravis Roberts
Microsoft
Harward Industries,Inc

AltaVista
Networking Technology
Gillette
Sidewalk entertainment
Kingston-Warren

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Examples of Liquidation
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In April 2011,Tarbella Cotton Mill, of Khalabat town ship sector 4, Haripur

In 1985, KAWASAKI Mills of Khalabat town ship sector 4, Haripur
Kohinoor rice Mills Limited, Lahore {Liquidation date 28/08/2001}
Larkana Sugar Mills (pvt limited) in Liquidation
NIPPON BOBBIN Company Pakistan (pvt limted) {Liquidation date Sep
2001}KARACHI

The END

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