4 Major Strategies in Business (I I D D)

Integration (A,B,F,H)

Acquisition - Acquiring a business

Supply chain- Supplier's Supplier > Direct Supplier > Producer > Distributor >
Customer
Backward Integration

Acquisition of the first supplier

Producer > Direct Supplier > Supplier's Supplier

Example: Starbucks Strategy

Starbucks Acquire the supplier to decrease the cost of supply needed for
their business
Forward Integration

Acquiring the Distributor Side

It is necessary to buy the whole asset

Example: Bottle Water Company

Buy a minimal asset to a company (distributor) to have the high opportunity

to
Horizontal Integration

Acquiring the Competitors

Sector- Government, academic, private, and whatnot.

Industry- Food and beverage Service industry

Market- QSR, Restaurant, Coffee Market,

Market Share (Intramuros)-

Company- Monthly Sales-Market Share (Monthly sales/total

market *100)
McDonald's- P180,000

Jollibee - P150,000

KFC-P120,000

Chowking-P100,000

Total Market- P550,000

Intensive Strategy (Application of Quantity) (Mp Md Pd)

Market Penetration

Purpose: Improve/Increase the Marketshare (Same Product and Location)

 Advertisements- this helps to eat the marketshare of the competitor

Market Development

Development of Market with the intention to expand the Market-size

Geographically

Product Development

Development of product through Modification, Improving, Innovation

Marketing and Operations Research and Development

Diversification (CHC)

Concentric Diversification

Adding new related products

Coffee product > Milktea

Horizontal Diversification

Adding unrelated products

Conglomerate Diversication

Conglomerate (Group of Companies)

Defensive Strategy (DRL)

Business Life cycle

Divestiture- selling assets to make the business survive

Retrenchment-Regrouping of the assets, to circulate the assets

Liquidation- Selling all of the assets