Group Members:

Francisco, Shela Mae A.

Carpin, Sheila Mae C.

Judilla, Lovelyn

Laurencio, Jay Ann A.

Integration Strategies

1. Forward Integration
 Disney
 Amazon
 Foxconn

2. Backward Integration
 Ford Motor Company
 Dell
 Apple

3. Horizontal Integration
 What happened between the infamous Daimler, Bens, and Chrysler merger (car
developing, manufacturing, and retailing).
 Travelopia
 Virgin Group

Intensive Strategies

1. Market Penetration
 Nike features famous athletes in print and television ads designed to take market share
within the athletic shoe business from Adidas and other rivals.
 McDonald’s drive-thru and home delivery services, expansion of distribution channels,
clever pricing strategy, product modifications and expansion of its menu, and franchising
strategy.
 Dunkin’ Donuts has a modern décor, more packaged take-out options, pick-up lines,
drive-thru facilitates, a partnership with Grubhub, and mobile ordering.

2. Market Development
 Unilever initially went into business selling soap. After realizing that the ingredients for
making soap shared similarities with those needed for making margarine, they
diversified and expanded into a new market with a new product. Over time, Unilever
created and acquired new brands in the soap, cosmetics, butter, and ice cream
industries, essentially diversifying its product line and market.
 Philadelphia-based Tasty Baking Company has sold its Tastykake snack cakes since 1914
within Pennsylvania and adjoining states. Now it is extensively distributing Tastykake’s
 products within the southeastern United States. Displaced Pennsylvania in the south
rejoiced.
 Carl’s Jr. and Hardee’s are two companies that started as separate restaurants — Carl’s
Jr. on the west coast and Hardee’s on the east coast — they merged in the late 1990s to
become one company under two names. From a high-level perspective, this might seem
like a branding and marketing nightmare, but within their respective geographic
markets, the different names have been successful. Carl’s Jr. took the opportunity to
acquire Hardee’s, thus expanding the burger chain across the country, becoming one of
the largest burger chains in the United States.

3. Product Development
 McDonald’s is always within the fast-food industry, but frequently markets new burgers.
 Coca-Cola is also developed new products for its existing market. Diet Coke, Vanilla
Coke, and Ginger Coke are examples of new products created by Coca-Cola to leverage
the Coke brand.
 Google developed a new browser Chrome for the existing Internet user.

Diversification Strategies

1. Related Diversification

 Darden Restaurants
 Olive Garden
 Red Lobster
 Bahamas Breeze

 Johnson & Johnson

 Prescription drugs
 Non-prescription drugs (Tylenol, Pepcid AC)
 Band-aids
 Baby products

 PEPSICO
 Soft drinks
 Fruit juices
 Snack foods (Fritos, Lays, Cracker Jacks)

2. Unrelated Diversification

 W.R. Grace
 Chemicals
 Coal Mining
 Oil and Gas Extraction
 Food Manufacturing
 Paper Products
 Health Services
  Textron, Inc.
 Bell – helicopters plus parts and service
 Cessna – general aviation aircraft
 Industrial – auto parts, food containers, hydraulics, golf carts
 Finance – aircraft finance, asset-based lending, distribution finance, golf finance,
resort finance

 Virgin
 Airlines
 Music
 Beverage
 Retailing
 E-commerce
 Financial services

Defensive Strategies

1. Retrenchment

 After sacking Steve Jobs from Apple inn 1985, Apple started losing its market position.
However, his return in 1997 turned the company around, and now it is the largest tech
company on the planet.
 America West Airlines closing its hub at Columbus, Ohio and laying off 390 employees
 In 2002, Club Med kicked off a cost-cutting program expected to save up to $36 million a
year by merging regional offices and closing 17 of 120 resorts.

2. Divestiture
 ConocoPhillips recently sold its Circle K convenience store chain to Alimentation Couche-
Tard, a Canadian firm.
 Harcourt General, the large US publisher, is selling its Neiman Marcus division.
 In 1997, Sara Lee embarked on a major restructuring designed to boost both profits,
which had been growing by just 6 percent a year since 1992. Sara Lee aimed to shift
from a manufacturing and sales orientation to one focused foremost on marketing the
firm’s top brands. The company sold off more than 110 manufacturing and distribution
facilities over the next two years.

3. Liquidation
 El-Ameer Block factory sold all its assets and ceased business.
 Sprint liquidated its Web-hosting division.
 GM liquidated its Canadian factory that made Camaros and Firebirds.