Chapter 8

Conclusion

This chapter explains corporate-level strategy. Executives grappling with corporate-level strategy must decide in what industry or industries their firms will compete. Many of the possible answers to this question involve growth. Concentration strategies involve competing within existing domains to expand within those domains. This can take the form of market penetration, market development, or product development. Integration involves expanding into new stages of the value chain. Backward integration occurs when a firm enters a supplier’s business while forward vertical integration occurs when a firm enters a customer’s business. Diversification involves entering entirely new industries; this can be an industry that is related or unrelated to a firm’s existing activities. Sometimes being smart about corporate-level strategy requires shrinking the firm through retrenchment or restructuring. Finally, portfolio planning can be useful for analyzing firms that participate in a wide variety of industries.

 

Exercises

  1. Divide your class into four or eight groups, depending on the size of the class. Each group should create a new portfolio planning technique by selecting two dimensions along which companies can be analyzed. Allow each group three to five minutes to present its approach to the class. Discuss which portfolio planning technique seems to offer the best insights.
  2. This text has discussed Disney in several chapters. Imagine that you were hired as a consultant by General Electric (GE), a firm that competes with Disney in the movie, television, retail products, interactive, theme park, and cruise line industries. Choose three of these industries and explain what actions you would recommend that GE take in these industries to gain advantages over Disney?

 

Attributions

Figure 8.1:
Bombardier MX Z-Rev Ski-Doo (Die Another Day) front-left National Motor Museum, Beaulieu by Karen Roe (http://commons.wikimedia.org/wiki/File:Bombardier_MX_Z-Rev_Ski-Doo_(Die_Another_Day)_front-left_National_Motor_Museum,_Beaulieu.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 8.2:
Coke Pepsi Cans by Ryan Glenn (https://www.flickr.com/photos/gongus/3025660880/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Pepsi Challenge by Sean Loyless (http://www.flickr.com/photos/haggismac/5090028513/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); First coffee of the semester. by Wesley Dobbs (http://www.flickr.com/photos/wesdobbs/3883583363/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Up close with the music station thing by Thomas Duesing (http://www.flickr.com/photos/tfduesing/75826176/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Gillette Fusion 1 by Naotake Murayama (https://www.flickr.com/photos/naotakem/108650269/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fifth); Mach-3-Razor by Evan-Amos (http://wikimediafoundation.org/wiki/File:Mach-3-Razor.jpg) is in the Public Domain (sixth)

Figure 8.3:
Nike, panneau d’affichage JC DECAUX (PARIX,FR75) by Jean-Louis Zimmermann (http://www.flickr.com/photos/jeanlouis_zimmermann/5175647157/sizes/o/in/photostream) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 8.5:
Air Canada 777 (7188398841) by Simon_sees (http://commons.wikimedia.org/wiki/File:Air_Canada_777_(7188398841).jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (first); Seattle’s Best by Rachel Sarai (https://www.flickr.com/photos/sarairachel/7513449136/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); Laptop HP by Shleiderbmx (http://commons.wikimedia.org/wiki/File:Laptop_HP.JPG) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (third); ’01-’05 Chrysler PT Cruiser Wagon by Bull-Doser (http://commons.wikimedia.org/wiki/File:%2701-%2705_Chrysler_PT_Cruiser_Wagon.JPG) is in the Public Domain (fourth); Adderall bottle and capsules by Ryanaxp (http://commons.wikimedia.org/wiki/File:Adderall_bottle_and_capsules.jpg) is in the Public Domain (fifth)

Figure 8.6:
relatives of reg? by s2art (https://www.flickr.com/photos/s2art/3450540/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/)

Figure 8.7:
AmericanApparelMalibu by American_Apparel (http://wikimediafoundation.org/wiki/File:AmericanApparelMalibu.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (first); American Apparel factory and distribution center, Los Angeles by AA (http://wikimediafoundation.org/wiki/File:American_Apparel_factory_and_distribution_center,_Los_Angeles.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (second); Dov Charney on young entrepreneur cover by dovcharney (http://www.flickr.com/photos/dovcharney/2885342063/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Flickr – urbantofu – american apparel by Urban Tofu (http://wikimediafoundation.org/wiki/File:Flickr_-_urbantofu_-_american_apparel.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (fourth); Hollywood Blvd. 022010Sa by vmiramontes (http://www.flickr.com/photos/vmiramontes/4376957889/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fifth); American Apparel by Nicolas Nova (http://www.flickr.com/photos/nnova/3399896671/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (background)

Figure 8.8:
Deepwater Horizon offshore drilling unit on fire 2010 by Unknown (http://en.wikipedia.org/wiki/File:Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg) is in the Public Domain

Figure 8.9:
Ford 1939 by Buron444 (http://en.wikipedia.org/wiki/File:Ford_1939.jpg) is in the Public Domain

Figure 8.10:
Aeroporto di Firenze – Parking lot for rental cars by Mattes (http://en.wikipedia.org/wiki/File:Aeroporto_di_Firenze_-_Parking_lot_for_rental_cars.jpg) is in the Public Domain

Figure 8.11:
Prescriptives Flawless Skin Concealer by ookikioo (https://www.flickr.com/photos/ookikioo/314692747/in/photostream/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); DKNY_060309_2514 by Jessica Sheridan (http://www.flickr.com/photos/16353290@N00/4043846042/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); Tokidoki for Smashbox cosmetics (https://www.flickr.com/photos/porcupiny/1926961411/in/photostream/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Estee Lauder Sensuous by daveynin (http://www.flickr.com/photos/daveynin/2726423708/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Studio DNA – Bumble and bumble by Shortcuts Smarter Busines… (http://www.flickr.com/photos/57283318@N07/5303842500/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fifth); facial soap by Joanne Saige Lee (https://www.flickr.com/photos/crystalliferous/3024189623/in/photostream/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (sixth); ‘even better’ skin tone corrector by Joanne Saige Lee (https://www.flickr.com/photos/crystalliferous/3025018504/in/photostream/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (seventh); Bobbi Brown Stonewashed Nudes Palette by ookikioo (http://www.flickr.com/photos/ookikioo/856924791/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (eighth); MAC Cosmetics by Church Street Marketplace (http://www.flickr.com/photos/churchstreetmarketplace/4180164459/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (ninth); Aveda Suits – EVO Conference by Betsy Weber (http://www.flickr.com/photos/betsyweber/5915582379/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (tenth); Jo Malone Perfume by Mohd Althani (http://www.flickr.com/photos/33707373@N03/4643563760/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (eleventh)

Figure 8.12:
2006 Honda VFR 800A5 by Sirimiri (http://commons.wikimedia.org/wiki/File:2006_Honda_VFR_800A5.jpg) is in the Public Domain

Figure 8.13:
P1010451 by Dr._Colleen_Morgan (https://www.flickr.com/photos/colleenmorgan/2216823306/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Kamstrup-Metro energy meter by Gert Skriver (http://commons.wikimedia.org/wiki/File:Kamstrup-Metro_energy_meter.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (second); Briefs-FruitoftheLoom-20080226 by Doommaster1994 (http://commons.wikimedia.org/wiki/File:Briefs-FruitoftheLoom-20080226.jpg) is in the Public Domain (third); Brick by Andrewlister (http://commons.wikimedia.org/wiki/File:Brick.jpg) is in the Public Domain (fourth); Asiana Airlines captains hat (6221725835) by InSapphoWeTrust (http://commons.wikimedia.org/wiki/File:Asiana_Airlines_captains_hat_(6221725835).jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en) (fifth); Morris-Chair-Ironwood by Resonance african furniture (http://commons.wikimedia.org/wiki/File:Morris-Chair-Ironwood.jpg) is in the Public Domain (sixth); Broodmes by T Houdijk (http://commons.wikimedia.org/wiki/File:Broodmes.jpg) is in the Public Domain (seventh); Chocolate candy piece by visualpanic (http://commons.wikimedia.org/wiki/File:Chocolate_candy_piece.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (eighth); Cheyenne Frontier Days Train – Pierce, Colorado by Jerry Huddleston (https://www.flickr.com/photos/huddleston/14750632575/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (ninth)

Figure 8.14:
Zippo-Slim-1968-Lit by David J. Fred (http://commons.wikimedia.org/wiki/File:Zippo-Slim-1968-Lit.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.5/deed.en)

Figure 8.15:
Topher Grace by David Shankbone by David Shankbone (http://en.wikipedia.org/wiki/File:Topher_Grace_by_David_Shankbone.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 8.16:
Cheshire Regiment trench Somme 1916 by John Warwick Brooke (http://en.wikipedia.org/wiki/File:Cheshire_Regiment_trench_Somme_1916.jpg) is in the Public Domain

Figure 8.17:
CES 2012 – Motorola (6764012909) by CES 2012 – Motorola (http://commons.wikimedia.org/wiki/File:CES_2012_-_Motorola_(6764012909).jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (first); Toyota Camry LE by IFCAR (http://commons.wikimedia.org/wiki/File:Toyota_Camry_LE.jpg) is in the Public Domain (second); An aol.com email address is the duncecap of the internet by Lee (https://www.flickr.com/photos/lazzarello/5454431231/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (third); EPROMs National Semiconductor by yellowcloud (http://commons.wikimedia.org/wiki/File:EPROMs_National_Semiconductor.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (fourth); DB-102b by Caseman (http://commons.wikimedia.org/wiki/File:DB-102b.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fifth)

Figure 8.18:
Masterpadlock by Thegreenj (http://commons.wikimedia.org/wiki/File:Masterpadlock.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 8.19:
Cara de quem caiu do caminhão… by Anderson Nascimento (http://commons.wikimedia.org/wiki/File:Cara_de_quem_caiu_do_caminh%C3%A3o….jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en)

Figure 8.20:
Star* by Indolences (http://commons.wikimedia.org/wiki/File:Star*.svg) is in the Public Domain (first); Vraagtaken by Ogre (http://commons.wikimedia.org/wiki/File:Vraagteken.svg) is in the Public Domain (second); Cows, Lancaster County by Tony Fischer (https://www.flickr.com/photos/tonythemisfit/4101214805/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Raskal by fugzu (http://commons.wikimedia.org/wiki/File:Raskal.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (fourth)

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