Level of Strategies

Corp
A Large Company Strategy

Business Strategy

Functional Level

Operational Level

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Types of Strategies

Forward
Integration

Vertical Backward
Integration Integration
Strategies

Horizontal
Integration

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Types of Strategies

Market
Penetration

Intensive Market
Strategies Development

Product
Development

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Types of Strategies

Related
Diversification

Diversification
Strategies

Unrelated
Diversification

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Types of Strategies

Retrenchment

Defensive Divestiture
Strategies

Liquidation

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2007 Examples

Forward Southwest Airlines selling tickets

Integration through Galileo

Backward Hilton Hotels could acquire a large

Integration furniture manufacturer

Horizontal Huntington Bancshares and Sky

Integration Financial Group merged

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2007 Examples

McDonald’s selling millions of

Market
“Shrek the Third” items to a
Penetration healthier image

Market Burger King opened its first

Development restaurant in Japan

Google introduced “Google

Product
Presents” to compete with
Development PowerPoint

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2007 Examples

Related MGM Mirage is opening its first non-

Diversification casino luxury hotel

Unrelated
Ford Motor Company entered the
Diversification industrial bank business

Discovery Channel closed 103 mall-

Retrenchment based and stand-alone stores

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2007 Examples

Whirlpool sold its struggling Hoover

Divestiture
floor-care business to Techtronic
Industries

Follow Me Charters sold all of its

Liquidation assets and ceased doing business

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Michael Porter’s Generic Strategies

Cost Leadership Strategies

(Low-Cost & Best-Value)

Differentiation Strategies

Focus Strategies
(Low-Cost Focus &
Best-Value Focus)

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 First Mover Advantages

 Benefits a firm may achieve by entering a

new market or developing a new product or
service prior to rival firms

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 Outsourcing
Business-Process Outsourcing
(BPO)

 Companies taking over the functional

operations of other firms

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