Name : Jovita Saras Putri

ID : 1611011030

STRATEGIC MANAGEMENT – Examples of Alternative Strategy

Example
Strategy
Company Reason
Amazon was already a vertically integrated
company in many ways: It publishes books
itself and provides a publishing platform for
independent writers, for example. It also owns
its own transportation and distribution, which
is both backward integration – toward
Amazon suppliers – and forward integration, because
Amazon delivers directly to end users. The
Whole Foods acquisition counts as forward
integration because it gives Amazon the 460
brick-and-mortar Whole Foods outlets as
places to sell its products or have customers
pick them up.
The non-profit Boston grocer making
headlines for selling healthy “food past its
prime,” has also implemented this strategy.
Daily Table
While their core business is collecting,
repackaging, and cooking food, they increase
Forward Integration
margins by selling through their own store.
Disney has pursued forward vertical
Integration by operating more than three
hundred retail stores that sell merchandise
Disney
based on Disney’s characters and movies. This
allows Disney to capture profits that would
otherwise be enjoyed by another store.
Intel supplies Dell with intermediate goods -
Dell its processors - that are placed within
Dell's hardware.
Walmart has distribution centers spread across
the country. By controlling logistics the
company is able to control the ease with which
merchandize get to the stores and deal
Walmart
effectively with shipment problems when they
occur. Private labeling and logistics are just
two examples of vertical integration in the
Walmart value chain.
Target has its own store brands. It owns the
manufacturing, controls the distribution, and is
Target the retailer. Because it cuts out the middleman,
Backward Integration it can offer a product like the brand name
product at a much lower price.
Netflix is a movie distributor, but the company
Netflix
also manufactures content and there are so
 many successful Netflix Original Movies.
McDonald’s grow their own potatoes. Their
World Famous Fries start out as whole
potatoes grown on Canadian farms (primarily
in New Brunswick and Manitoba). Then our
McDonald’s
supplier, McCain, cuts, blanches, par-fries,
and freezes them. Then they're shipped to our
restaurants, where we cook them to golden
perfection.
Starbucks, known for its trendy coffee shops
around the world, has purchased an active
farm on roughly 600 acres in Costa Rica,
Starbucks
which it will convert to a global agronomy
research and development center. They grow
their own coffee in their own farm
the Italian chocolate company, did this in 2014
Ferrero when it bought a hazelnut processing company
to aid in producing its famous Nutella spread
Facebook's acquire Instagram in 2012 for a
reported $1 billion. Both Facebook and
Instagram operated in the same industry
(social media) and shared similar production
stages in their photo-sharing services.
Facebook sought to strengthen its position in
Facebook- the social sharing space and saw the
Instagram acquisition of Instagram as an opportunity to
grow its market share, reduce competition, and
gain access to new audiences. Facebook
realized all of these through its acquisition.
Instagram is now owned by Facebook but still
operates independently as its own social media
platform.
Pixar operated in the same animation space as
Horizontal Intergration Disney, but its (digitally) animated movies
used cutting-edge technology and an
Disney-Pixar innovative vision. The deal is now widely
considered to have literally and figuratively
reanimated Disney expanded its market share
and boosted its profits.
Officially, Exxon bought Mobil for $75.3
billion, and the purchase enabled Exxon to
gain access to Mobile's gas stations as well as
its product reserves. Thanks to the pooling of
resources, increased efficiency in operations
Exxon Mobile
and streamlining of procedures, today,
ExxonMobil is one of the biggest oil
companies in the world. The Daily Records
lists it as the third largest in terms of
production as of 2019, while Oil&GasIQ, a

Kraft-Heinz
Marriot-Starwood Marriott Rewards member, this will mean
Starbucks
Related Diversification
Coca Cola
Unrelated
platform for thought leadership to
professionals in the hydrocarbons sector, cited
Exxon as the fourth largest in terms of
production in 2018.
Once combined, the Kraft Heinz Company
will be one of the largest food and beverage
conglomerates in the world, with nearly $28
billion in annual sales, and is expected to have
a market value of more than $80 billion.
Marriott International will join together with
Starwood Hotels & Resorts to create the
world’s largest hotel company. As a valued
even more choices in even more places, giving
you access to 1.1 million rooms across 5,500
hotels in more than 100 countries.
In the U.S. Starbucks is now serving La
Boulange pastries – a bakery that the firm
acquired for $100 million – and Evolution
Harvest granola bars – again acquired for a
tasty $30 million. Across the sea in the U.K
Starbucks has launched a new food range, with
the ‘Duffin’ doughnut/muffin hybrid serving
as the flagship product.
Less than seventy percent of the firm’s
revenue comes from any one business and the
businesses share only a few links across
them. Disney is in the theme park, movie/TV
production, TV broadcasting, and
Disney merchandising industries. Several of these
businesses market the same characters across
them such as Mickey Mouse. ESPN is in the
TV production and TV broadcasting industry
and is linked to other Disney companies like
the Disney Channel.
In March 2013, Ikea announced that it is to
partner with Marriott International to open a
IKEA chain of three-star hotels. The chosen brand
name for this joint venture between Marriott
and Ikea is Moxy Hotels.
the company added a new beverage to its line
up, called Coca-Cola Coffee Plus, which adds
twice the caffeine of a regular soda to the can.
Now, Coca-Cola wants to dip its toe into the
booze business, with its first alcoholic offering
in the company’s 125-year history.
Apple Inc introducing Apple Watch is an
Apple
example of related diversification.
Kodak Kodak officials have long believed that the
Diversification chemicals they developed for photographic
and specialty fields also have commercial
potential as pharmaceuticals. Three years ago,
they began testing that theory in earnest,
combing through their library and conducting
sophisticated tests on the most promising of
their compounds.
The Virgin Group is an excellent example of
the extent to which a diversification strategy
may be undertaken. Though critics say that,
with regards to this company, diversification
Virgin Group
has almost become a brand value in itself. The
Virgin Group has under it more than 200
companies which range from the Virgin Bridal
Stores to Virgin Airlines.
Coca-Cola did just this when it purchased
Columbia Pictures in 1982 for $750 million.
Coca Cola Luckily for Coca-Cola, its investment paid
off—Columbia was sold to Sony for $3.4
billion just seven years later.
Harley-Davidson, for example, once tried to
Harley-Davidson
sell Harley-branded bottled water.
Starbucks tried to diversify into offering
Starbucks
Starbucks-branded furniture.