Strategic Management Essay

3069 Words13 Pages
OPEN UNIVERSITY MALAYSIA Faculty of Science & Technology BBPS 4103 Strategy Management Assignment 1 NAME : LIM WEI ZHENG MATRIX NO : 870316145695001 IC : 870316145695 LEARNING CENTRE : OUM SHAH ALAM LEARNING CENTER E TUTOR : WONG SHIN VOON JOHNATHAN Integration Strategies Forward integration, backward integration, and horizontal integration are sometimes collectively referred to as vertical integration strategies. Vertical integration strategies allow a firm to gain control over distributors, suppliers and or competitors. Forward integration Forward integration involves gaining ownership or increased control over distributors or retailer. Increasing numbers of manufacturers ( suppliers) today are pursuing a forward integration strategy by establishing websites to directly sell products to consumers. This strategy is causing turmoil in some industries. For example, Apple IC, recently began selling its IPad and IPhone through Verizon Wireless 2000 strores and AT&T’s 2200 stores. Apple’s Forward integration strategy aims to capitalize on its lead in tablets before the rival BlackBerry and Motorola versions are released. Based in Herzogenaurach, Germany, Adidas plans to add 2500 stores in China between 2011 and 2015 as the company widens its distribution in that country from 500 cities currently to over 1400. As part uts new forward integration strategy in China, Adidas plan also to boost its presence in basketball, a sport that Adidas emphasizes less than competitors such as Nike and Li Ning Company, China’s leading sports – apparel market. Adidas recently sponsored the Beijing Marathon, the company’s firsr running competition is China. Chrysler Group LLC in 2011 opened its first company owned dealership, Motor Village of Los Angelas, four level facility in downtown Los Angeles that houses all of Chrysler’s brands, including Fiat. This

More about Strategic Management Essay

Open Document