Name : Muhammad Nabiel Dasaad

SN : C1I018022

1. Please list and explain the five type of corporate level strategy. Give one example for each type.
(So must be 5 examples)

2. Please list and explain the five types of business level strategy. Give one example of each type. (So
must be 5 examples)

3. Please explain about merger and give one example from a real business

4. Please explain about acquisition and give one example from a real business

5. Please explain about take over and give one example from a real business

Answer:

1.
 Stability Strategy : strategy by a company where the company stops the expenditure on
expansion, in other words it refers to situation where company do not venture into new
markets or introduce new products.

- Steel Authority of India has adopted stability strategy because of over capacity in steel
sector. Instead it has concentrated on increasing operational efficiency of its various
plants rather than going for expansion. Others industries are ‘heavy commercial vehicle’,
‘coal industry’.

 Expansion Strategy :  is adopted by an organization when it attempts to achieve a high growth
as compared to its past achievements.

- a small soap distributor that sells to retail stores may discover that factory workers also
use its product.

 Retrenchment Strategy : is A strategy used by corporations to reduce the diversity or the

overall size of the operations of the company. This strategy is often used in order to cut
expenses with the goal of becoming a more financial stable business.

- a corporate hospital may decide to focus only on specialized treatments, and thus, realize
higher revenues.

 Defensive Strategy : is defined as a marketing tool that helps companies to retain valuable
customers that can be taken away by competitors. Competitors can be defined as other firms
that are located in the same market category or sell similar products to the same segment of
people

- in the late 1990s the Australian telecommunication company Telstra was facing the fear
of competition for the first time due to the facts that a new entrant called Optus was
 already threatening the company's operation. [2] The managers of Telstra knew that they
have to act quickly and decided to implement a defensive strategy. They created a model
to predict consumers' responses and Telstra redesigned its internal operations
leaving Optus in a vulnerable situation. The company gained more market share and
reputation

 Growth Strategy : is a plan of action designed to help businesses capture a larger share of the
market, even if it comes at the expense of short-term profit. 

 Google
Google is renowned for its namesake search engine, but what fueled its growth into the
company now called Alphabet is its outsized revenues. How did Google do it?

It used a product development strategy

Google started as a business-to-consumer (B2C) company offering a search engine. But it
needed a source of revenue. To achieve that revenue, it developed a new product,
AdWords, targeted to businesses that had to pay to advertise.

2.
 Cost leadership: produce/deliver goods/services with features that are

acceptable to customers at the lower cost than competitors

ex: Walmart, Greyhound Bus

 Differentiation: produce/deliver goods/services at an acceptable cost that

customers perceive as different in ways that are important to them (target

customers perceive product value)

ex: iPod

 Focused cost leadership: produce/deliver goods/services at lower cost than

competitors to a niche market

ex: redbox

 Focused differentiation : produce/deliver goods/services that are

differentiated for a specific market segment

ex: is Breezes Resorts, a company that caters to couples without children. The firm
operates seven tropical resorts where vacationers are guaranteed that they will not be
annoyed by loud and disruptive children. While a differentiation strategy involves
offering unique features that appeal to a variety of customers, the need to satisfy the
desires of a narrow market means that the pursuit of uniqueness is often taken to the
proverbial “next level” by firms using a focused differentiation strategy. Thus the unique
features provided by firms following a focused differentiation strategy are often
specialized.
  integrated cost/leadership differentiation : efficiently produce products with

differentiated attributes. can adapt to new technology and rapid changes in

external environment

ex: Air Arabia is one such example where quality service is provided in terms of comfort
and travel at an economic fare by cutting down on various premium in-flight services.

3. merger is an agreement that unites two existing companies into one new company.
Ex: In 2005, Google acquired Android for an estimated $50 million. At the time of the deal,
Android was an unknown mobile startup company. The move made it possible for Google
to compete in a market owned by Microsoft with Windows Mobile and Apple’s iPhone.
This deal is a successful acquisition example, 54.5 percent, of U.S. smartphone subscribers
use a Google Android device as of May 2018

4. Acquisition is a strategy through which one firm buys a controlling, or 100

percent,
interest in another firm with the intent of making the acquired firm a subsidiary
business within its portfolio.

Ex: Facebook Acquisition of Whatsapp in 2014

5. takeover is a special type of acquisition wherein the target firm does not solicit the acquiring
firm’s bid; thus, takeovers are unfriendly acquisitions.
Ex: AT&T takeover Bellsouth in 2006

Bonus point photo