CONCENTRATION

INTEGRATION
DIVERSIFICATION COOPERATION

INTERNATIONAL
DIGITLALISATION

 It involves converging resources in one or more of a

firms business in terms of their respective customer needs and functions either singly or jointly in such a manner that results into expansion.

 Focus or specialization strategies

Firms tend to rely on doing what they know they are

best at doing. It involves minimum organization changes Intense focusing of resources on a few business.

 Combining activities related to the present activity of

the firm. On the basis of value chain It involves doing something different from what the firm has been doing previously.

 Vertical

Horizontal

 When an orgn starts making new products that serve

its own needs. Any new activity undertaken with the purpose of either supplying inputs or serving customers for outputs is vertical integration.

 Backward

Forward
Backward integration means retreating to the source

of raw materials Forward integration moves the orgn nearer to the ultimate consumer.

 It seeks to increase profitability through greater sales

volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally via investing in a promising business outside of the scope of the existing business unit.

 Concentric marketing related

technology related marketing and technology related Conglomerate

 When an orgn takes up an activity in such a manner

that it is related to the existing business definition of one or more of a firms business either in terms of customer groups, customer functions ,alternative technology is Concentric diversification.

 When a similar type of a product is offered with the

help of unrelated technology. Eg. A company in sewing machine business diversify into kitchenware and other household appliances which are sold to housewife

 When a new type of product or service is provided

with the help of technology. Leasing firm offering hire purchase services to institutional customers also starts consumer financing for purchase of durables to individual customers.

Marketing and technology related diversification a

similar type of pdt or service is provided with the help of related technology.

Thank you