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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