Discussion 1 Week 6 Corporate-level Strategies Assignment

Discussion 1 Week 6 Corporate-level Strategies - Assignment Example The merger could increase tendencies for dependencies between the corporate partners. As such, two examples which would illustrate the manner in which each company would avoid risks of dependency are as follows: (1) one company could replicate a successfully implemented business model in new market segments within the industry (Hill and Jones); and (2) the corporate partner could differentiate its products (or services) by focusing on core competencies which appeal to their clientele. For instance, offering exemplary customer service through acknowledging loyal clients by name recognition or provision of perks and freebies. 2. From e-Activity, determine the fundamental drawbacks associated with horizontal integration. Suggest another corporate-level strategy that could redefine the Southwest business model and thus allow the company to increase its competitive advantage within a changing industry environment. Provide a rationale to support your response. The fundamental drawbacks associated with horizontal integration include being exposed to coming into conflict with the Federal Trade Commission (FTC) for potential violations of anti-trust laws which undermine fair competition. In addition, customers’ interests and purchasing power could also be jeopardized if major companies within the industry engage in horizontal integration and control or dictate market prices. As such, another corporate-level strategy that could redefine the Southwest business model and allow the company to increase its competitive advantage within the changing airlines industry is the application of vertical integration. Southwest could look into improving scheduling (queuing of airline routes to facilitate speed in the number and volume of flights). The strategy would assist in minimizing costs, as well as improving customer satisfaction through speed within which services

Strategy Report of Tesco Case Study Essay Example | Topics and Well Written Essays - 3500 words

Strategy Report of Tesco Case Study - Essay Example Although Tesco concentrated on the core growth of the company during the 50s and 60s, apart from organic growth, they also grew through acquisitions. They increased their market share at low cost as they concentrated in opening stores in and around London. The organic growth represents the long-term strategy of the company and also its core strength and vitality. The number of stores grew and they acquired cost leadership but cost leadership comes with disadvantages (Porter, 1979). Very low cost may take loyal customers away and it may also start losing revenues, which is what happened to Tesco. It then changed its strategy to increase its market share – price reduction and centralized buying. Thereafter Tesco concentrated on growth based on four factors. While UK was their core market, they also expanded internationally. Apart from market development, they also focused on product development as they became as strong in non-food products as in food. Besides, they also introduced new retailing services. So their strategy was both market and product development. This is how they penetrated into the market and increased their market share. In their overseas expansion, they adopted a localized approach where they took into account the local culture, local suppliers and ways of working. They also recognized that each individual was different and hence adopted the multi-format strategy. They focused on a few markets which helped them gain competitive advantage and then find the direction for growth and development. During the 1990s Tesco concentrated on national market development through product innovation. They attracted and retained customers through different innovative strategies. To retain loyal customers they introduced loyalty cards; to attract a new segment they started online shopping and thereby created differentiation in their service offerings. It was the same market but with the help of technology they could