Turnaround Strategy

It is a strategy developed when a company feels that the decision or strategy taken by them earlier is
wrong and may be leading to loss, then the new strategy formed to take the business back to track
of profitability is known as turnaround strategy.

Example of Success

Dell which is one of the top computer manufacturer and retailer in the world had used a successful
turnaround strategy for reaching to this position. In Early 2006 for reducing the cost they took a
strategy to sell their laptops and computers directly. But this strategy then suffered losses. i.e the
strategy was a failure at that time and Dell was loosing sales. So in the next year 2007, dell withdraw
this strategy and initiated the strategy to sell their products via retailers. This resulted in success of
the company.

Example of Failure

Nokia was leading Indian market before the android generation started. When other competing
companies started launching their android devices Nokia was losing their market shares. i.e Nokia’s
existing strategy was failing. Nokia took a strategy to use windows OS powered phones to compete
in the market. This was the turnaround strategy for Nokia. But what happened was Nokia was not
able to compete with Android as compared to windows OS Android was more used friendly. So
eventually Nokia got beaten by the competition and went out of business.

Restructuring

Disney Restructured its media and entertainment business for accelerating their growth as
customers are now more attracted towards digital entertainment. As part of this strategy Disney
separated their development and production of programs from the distribution so that separate
focus can be given to both and can be more responsive to customer demands. As per the new
structure Disney’s studios, entertainment and sports business will come under one division and
distribution and commercialization comes under different division. The former will be in charge for
the content creation and the later will be in charge of how and where the customers can access it.

Example of Franchising

 McDonalds
 Dominos
Example of Wholly Owned Subsidiary

 Volkswagen AG - wholly owns Volkswagen Group of America Inc.

 Reliance Industrial Investments and Holdings Limited (RIIHL), is a wholly owned subsidiary of
the Reliance Group of Company.

Example of Licensing

 In 2018 Nestle and Starbucks entered into a coffee licensing deal. Nestle agreed to pay $7.15
billion to Starbucks for the exclusive rights to sell Starbucks products around the world
through Nestle’s distribution network.
 McDonalds entered into licensing agreement with Disney for using the trademark character
of Disney to cobrand their happy meals.

Example of Turnkey

 Airport Construction projects

 Dedicated Freight Corridor Project