strategic management exemples

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Integration Strategies Horizontal integration KLM Royal Dutch Airlines purchased controlling stock in Northwest Airlines to gain access to American and Asian markets AMR, the parent company of American Airlines makes most of its money with the SABRE reservation system. It has spun off this technology to build systems for other firms in the travel/hospitality industry Pernod Ricard, then the world's third largest wine and spirits producer, made another play for a portfolio of leading international brands. It launched a friendly takeover bid of British rival Allied Domecq plc. in 2005, offering EUR 10.7 billion ($13.9 billion) for the company. Addidas in 2005 buy reebok an American rival for $3.8 billion. This joining number two and number three in the industry allowed it to challenge market leader NIKE. Addidas was powerful in the market over suppliers and retailers. Reebok was stronger in US and Addidas was stronger in Europe so this was a good strategic fit. The GAP Inc. retail clothing corporation is a good example of a business that practices horizontal integration. GAP Inc. controls three distinct companies, Banana republic, Old Navy, and the GAP brand itself. Each company has stores that market clothes tailored to appeal the needs of a different group. Banana republic sells more expensive clothes with a more "upscale", the GAP sells moderately priced clothes that appeal to middl e-aged men and women, and Old Navy sells inexpensive clothes geared towards children and teenagers. By using these three different companies, GAP Inc. has been very successful at controlling a large segment of the retail clothing industry. Forward integration Dell computers in Sears’s stores. The stores won't actually move merchandise. Rather, customers will be able to peruse Dell's offerings and then place their orders in the store. In a sense, this is just an extension of their mall-kiosk program. Boise to Acquire OfficeMax for $1.154 Billion in Cash and Stock. The Acquisition of OfficeMax: More than doubles the size of Boise Office Solutions, Boise's officeproducts distribution  business, to pro forma 2002 sales of $8 .3 billion. By adding retail to its existing contract business, addresses allcustomer segments through all distribution channels. Provides a platform for growth in the small business segment.

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Page 1: Strategic Management Exemples

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Integration Strategies

Horizontal integration

KLM Royal Dutch Airlines purchased controlling stock in Northwest Airlines to gainaccess to American and Asian markets

AMR, the parent company of American Airlines makes most of its money with theSABRE reservation system. It has spun off this technology to build systems for other firms in the travel/hospitality industry

Pernod Ricard, then the world's third largest wine and spirits producer, made another playfor a portfolio of leading international brands. It launched a friendly takeover bid of British rival Allied Domecq plc. in 2005, offering EUR 10.7 billion ($13.9 billion) for thecompany.

Addidas in 2005 buy reebok an American rival for $3.8 billion. This joining number twoand number three in the industry allowed it to challenge market leader NIKE. Addidaswas powerful in the market over suppliers and retailers. Reebok was stronger in US andAddidas was stronger in Europe so this was a good strategic fit.

The GAP Inc. retail clothing corporation is a good example of a business that practiceshorizontal integration. GAP Inc. controls three distinct companies, Banana republic,Old Navy, and the GAP brand itself. Each company has stores that market clothestailored to appeal the needs of a different group. Banana republic sells more expensiveclothes with a more "upscale", the GAP sells moderately priced clothes that appeal tomiddle-aged men and women, and Old Navy sells inexpensive clothes geared towardschildren and teenagers. By using these three different companies, GAP Inc. has been verysuccessful at controlling a large segment of the retail clothing industry.

Forward integration

Dell computers in Sears’s stores. The stores won't actually move merchandise. Rather,

customers will be able to peruse Dell's offerings and then place their orders in the store.

In a sense, this is just an extension of their mall-kiosk program.

Boise to Acquire OfficeMax for $1.154 Billion in Cash and Stock.

The Acquisition of OfficeMax:

• More than doubles the size of Boise Office Solutions, Boise's officeproducts distribution

 business, to pro forma 2002 sales of $8.3 billion.

• By adding retail to its existing contract business, addresses allcustomer segments through

all distribution channels.

• Provides a platform for growth in the small business segment.

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• BlackBerrys pearl

• Palm Inc.Treo 750

Diversification

Related diversification

• AT&T with Bell south (internet radio service)

• AT&T with Verizon (TV with roaster)

• Google with YouTube and double-click 

• Seagate with Evault (disk to data storage)

• Cisco systems with WebExcommunication (computer routers to conferencing services)

Un-related diversification

1-Cendant corp.

• Century 21(real estate)

• Avis (car rental agency)

• Day-inn (hotel brand)

2-Morgan Stanley brokerage

• Casino in AtlanticCity

• Trump ext. resorts

• Luxury hotels in japan

•  Nippon airways

3-Honeywell Intl (thermostat and aircraft engines)

• Flat panel TV

• Computer monitors

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4-Wall-mart

• Banking services

5-Generalelectric (light bulbs, locomotives, power plants, refrigerators)

•  National broad casting (NBC)

• Vivendi Universal entertainment (television and theme parks)

Defensive strategies

Retrenchment

•  Nortel

• Circuit city

• Kodak 

• Daimler Chrysler 

• Citi group

• La -Z-boy

Divestiture

• Coca Cola buy San Miguel corp. (soft drink bottling)

• SBEentertainment buysGordongaming (Sahara hotel & casino)

• B&G foods buy Kraft foods (hot cereals)

• AIG Global investment buy Dubai ports world (U.S assets)

•  Nestle SA buys Novartis AG (medical nutrition)

Liquidation

• Jestjo