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    Forward Integration

    Uploaded by

    Atif Khan
    The document defines several business strategy terms: forward integration occurs when a farmer sells crops directly to stores rather than middlemen; backward integration is when a bakery purchases a wheat farm or processor; horizontal integration involves two manufacturers of the same product merging; market penetration measures a company's share of an existing market like Apple and Samsung in smartphones; market development expands a company's existing products to new users or markets like Nike; product development expanded Netflix from DVD rentals to streaming; related diversification includes Disney purchasing ABC due to synergies; unrelated diversification differs like Amazon buying Whole Foods; retrenchment cuts costs through job reductions like HP; divestiture sells unnecessary business units; and liquidation closes a failing business entirely like

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    Forward Integration

    Uploaded by

    Atif Khan
    11 views2 pages
    The document defines several business strategy terms: forward integration occurs when a farmer sells crops directly to stores rather than middlemen; backward integration is when a bakery purchases a wheat farm or processor; horizontal integration involves two manufacturers of the same product merging; market penetration measures a company's share of an existing market like Apple and Samsung in smartphones; market development expands a company's existing products to new users or markets like Nike; product development expanded Netflix from DVD rentals to streaming; related diversification includes Disney purchasing ABC due to synergies; unrelated diversification differs like Amazon buying Whole Foods; retrenchment cuts costs through job reductions like HP; divestiture sells unnecessary business units; and liquidation closes a failing business entirely like

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    The document defines several business strategy terms: forward integration occurs when a farmer sells crops directly to stores rather than middlemen; backward integration is when a bakery purchases a wheat farm or processor; horizontal integration involves two manufacturers of the same product merging; market penetration measures a company's share of an existing market like Apple and Samsung in smartphones; market development expands a company's existing products to new users or markets like Nike; product development expanded Netflix from DVD rentals to streaming; related diversification includes Disney purchasing ABC due to synergies; unrelated diversification differs like Amazon buying Whole Foods; retrenchment cuts costs through job reductions like HP; divestiture sells unnecessary business units; and liquidation closes a failing business entirely like

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    11 views2 pages

    Forward Integration

    Uploaded by

    Atif Khan
    The document defines several business strategy terms: forward integration occurs when a farmer sells crops directly to stores rather than middlemen; backward integration is when a bakery purchases a wheat farm or processor; horizontal integration involves two manufacturers of the same product merging; market penetration measures a company's share of an existing market like Apple and Samsung in smartphones; market development expands a company's existing products to new users or markets like Nike; product development expanded Netflix from DVD rentals to streaming; related diversification includes Disney purchasing ABC due to synergies; unrelated diversification differs like Amazon buying Whole Foods; retrenchment cuts costs through job reductions like HP; divestiture sells unnecessary business units; and liquidation closes a failing business entirely like

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    1.

    Forward Integration
    a farmer who directly sells his crops at a local grocery store rather
    than to a distribution center that controls the placement of
    foodstuffs to various supermarkets.

    2. Backward Integration
    a bakery that purchases a wheat processor or a wheat farm

    3. horizontal integration
    Two manufacturers of electric engines merge. One entity produces
    engines for cars, while the other entity produces engines for trucks

    4. market penetration
    Global leaders like Apple and Samsung have a market penetration
    rate of 19.2% and 18.4% respectively, the highest in the smartphone
    industry

    5. Market Development
    include , attracting new users,, branding, and expansion of the target
    market. An example of a company that has successfully implemented
    a market development strategy is Nike.

    6. Product development
    Netflix. Netflix started out as a DVD rental platform, now the
    developed a lot

    7. related diversification
    Disney's purchase of ABC is an example of related diversification.

    8. Unrelated diversification
    Amazon entering the grocery store business with its purchase of
    Whole Foods.
    9. Retrenchment
    HP cuts 27,000 jobs by the end of 2014

    10. Divestiture
    Walls and polka

    11. Liquidation
    PIA is near to liquidation if not improved

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