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A collection of businesses in different industries in the media sector
Media empire
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What are the 3 corporate level strategies for repositioning and redefining a company's business model?
- Horizontal integration
- Vertical integration
- Strategic integration
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In order to increase profitability, a corporate-level strategy should enable a company or one or more of its business divisions or unit to perform value-chain functional activities
- (1) at a lower cost and/or
- (2) in a way that allows for differentiation
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The process of acquiring or merging with industry competitors to achieve the competitive advantages that arise from large size and scope of operations
Horizontal integration
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When one company uses its capital resources, such as stock, debt, or cash, to purchase another company
Acquisition
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An agreement between equals to pool their operations and create a new entity
Merger
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Offering customers the opportunity to buy a complete range of products at a single combined price
Product bundling
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Involves a company taking advantage of or leveraging its established relationship with customers by acquiring additional product lines or categories that it can sell to them
Cross-selling
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Expands its operations backward into an industry that produces inputs for the company's products
Backward vertical integration
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Expands forward into an industry that uses, distributes, or sells the company's products
Forward vertical integration
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Being taken advantage of by a trading partner after the investment in specialized assets has been made
Holdup
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When a company exits industries adjacent to its core industry in the industry value chain
Vertically disintegrates
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The prices one division of a company charges other divisions for its products
Transfer prices
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The costs of solving the transaction difficulties that arise the managerial inefficiencies and the need to manage the handoffs or exchanges between business units to promote increased differentiation or to lower a company's cost structure
Bureaucratic costs
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Long term agreements between two or more companies to jointly develop new products or processes that benefit all companies concerned
Strategic alliances
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Independent component suppliers compete to be chosen to supply a particular component, made to agreed upon specifications, at the lowest price
Competitive bidding strategy
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They enter into long-term contracts with at least two suppliers for the same component
Parallel sourcing policies
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Decision to allow one or more of a company's value-chain activities or functions to be performed by independent specialist companies that focus all their skills and knowledge on just one kind of activity
Strategic outsourcing
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Companies that have pursued extensive strategic outsourcing
Virtual corporation
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