Definition: By controlling the sales process and channels

Applicable conditions: ①Existing sellers have higher sales costs or poor reliability ②The industry has great growth potential ③ Have the funds, human resources, etc. required for forward integration ④The profit margin in the sales process is relatively high

Definition: To gain ownership or increase control over a supplier

Applicable conditions: ① Existing suppliers have higher supply costs or poor reliability ② Few suppliers but many demanders ③The industry has great growth potential ④ Have the funds and human resources required for backward integration ⑤The profit margin in the supply chain is relatively high ⑥ Product price stability is very critical for enterprises

Definition: The strategy of corporate acquisitions, mergers, or joining forces with competing companies

Applicable conditions: ①Competition in the industry is fierce ②The industry has significant economies of scale ③The horizontal integration of enterprises complies with antitrust laws ④The industry has great growth potential ⑤ Have the funds, human resources, etc. required for horizontal integration

Definition: Emphasis on developing a single product and gaining greater market share through stronger marketing methods

Applicable conditions: ① When the entire market is growing, companies that want to increase market share can quickly achieve their goals (incremental market) ②The limitations of the company's market and products determine that the company must use a market penetration strategy (last elimination) ③If other companies leave the market, it is easier to succeed using a market penetration strategy (hold your ground) ④The company has a strong market position and can use its experience and capabilities to gain strong competitive advantages (take the initiative) ⑤When the risk of market penetration strategy is low, senior management involvement is high, and when less investment is required (less investment)

Definition: A strategy for entering new markets with existing products or services. Directions include opening up other regional markets or market segments

Applicable conditions: ①There is an untapped or unsaturated market ② New, reliable, economical and high-quality sales channels are available ③The company is very successful in its current business field ④The enterprise has the capital and human resources needed to expand its operations ⑤The enterprise has excess production capacity ⑥The main business of the enterprise belongs to an industry that is rapidly globalizing

Definition: Research and develop new products through technological improvement and development in the original market

Applicable conditions: ①Enterprise products have high market credibility and customer satisfaction ②The industry in which the enterprise is located is a high-tech industry that develops at a rapid pace through innovation. ③The industry in which the enterprise is located is in a stage of rapid growth ④The enterprise has strong research and development capabilities ⑤Major competitors offer higher quality products at similar prices

① Continued operations in existing products or markets cannot achieve the goal (development is limited) ② The funds retained by the enterprise due to previous successful operations in existing products or markets exceed the funds required for financial expansion in existing products or markets (there are spare funds) ③ Compared with expansion in existing products or markets, diversification strategy means higher profits (profits need to increase)

① Diversify risks ②It is easier to obtain financing from the capital market ③When enterprises cannot grow in the original industry, they find new growth points ④ Utilize underutilized resources ⑤Use surplus funds ⑥Obtain funds or other financial benefits ⑦ Use the company’s image and reputation in a certain industry or market to enter another industry or market

① Risks of original industries ② Overall market risk ③Risk of industry entry ④Industrial exit risk ⑤Internal business integration risks

The need for corporate strategy sufficiency

External environmental reasons, internal environmental reasons

Mechanism change

Adjust financial strategy

cost cutting strategy

Reposition or adjust existing products and services and adjust marketing strategies

Franchise, subcontracting, sell-out, management leveraged buyout, divestiture into shares/spin-off

The degree of specialization of fixed assets, exit costs, internal strategic connections, emotional barriers, government and social constraints

advantage: ① Helps enterprises improve their financial strength ②By partially owning the other party ③ Enhance the sense of trust and responsibility of both parties, which is more conducive to long-term cooperation

Cons: Flexibility

Advantages: greater advantages in terms of operational flexibility, autonomy and economic benefits

shortcoming: ① Poor ability to control the alliance ② Loose organizations lack stability and long-term interests ③Insufficient communication among alliance members and low organizational efficiency

① Strictly define the goals of the alliance ② Carefully design the alliance structure ③Accurately evaluate the assets invested ④Stipulation of liability for breach of contract and dissolution of treaty

① Alliances must trust each other and be oriented toward maximizing the interests of both parties, rather than maximizing their own interests. ②Trust can reduce the supervision cost between alliance partners, greatly improve the possibility of alliance success, and is the most effective means to influence and control the behavior of alliance partners.

①The product has high price elasticity, and there are a large number of price-sensitive users in the market ②The products of all companies in the industry are standardized products, and it is difficult to differentiate products. ③Buyers don’t pay much attention to the brand ④Price competition is the main means of market competition ⑤Consumers’ switching costs are low

①Equip corresponding production facilities in industries with significant economies of scale to achieve economies of scale ②Reduce the costs of various factors ③Improve productivity ④Improve product process design ⑤ Improve the utilization of production capacity ⑥Choose the appropriate trading organization form (self-production or outsourcing) ⑦ Centralized allocation of resources, concentrating resources on a certain business field (such as a specific customer group or a specific market)

① Products can be fully differentiated and recognized by customers ②Customer needs are diverse ③The industry in which the enterprise is located undergoes rapid technological changes, and innovation becomes the focus of competition.

①Have strong R&D capabilities and product design capabilities ②Have strong marketing capabilities ③ Have an incentive system, management system and innovative culture that can ensure the creativity of employees ④Have the ability to improve the quality of a certain business as a whole, establish product image, maintain advanced technology and establish and improve distribution channels

Concentrated cost leadership, suitable for consumer groups with lower income levels

Keep the quality of your product or service the same while lowering the price

Companies can gain cost advantages while providing higher recognition value to customers

Provide customers with customer-recognized value that is higher than competitors at the same or slightly higher prices

Focus on differentiation and provide users with higher added value of products at particularly high prices

Franchise or franchise

Technological innovation to create economies of scale

Discover industry trends early

Specialization by product type or product segment

Customer Type Specialization

Geographic area specialization

Geographic segmentation

population segmentation

psychographic segmentation

behavioral segmentation

User's industry category

User scale

User's geographical location

buying behavior factors

Only consider market demand, regardless of differences, and use one product and one promotion method to attract more consumers.

According to the demand characteristics of different market segments, we design and produce different products and formulate different marketing mix strategies.

Target several submarkets with similar properties and try to occupy a larger market share in fewer submarkets

Expand product portfolio

Reduce product portfolio

product extension

single brand name

Each product has a different brand name

private label

Filter ideas

cost oriented pricing

demand-based pricing

Competition Oriented Pricing

psychological pricing strategies

Product portfolio pricing strategy

Discounts and discount strategies

Geographical Spread Strategy

penetration pricing

skimming pricing

Satisfied with pricing strategy

direct distribution

indirect distribution

online channels

Offline channels

Advertising in the media

Use non-media promotion methods

Promote corporate image

Sales representatives are in direct contact with customers

Suitable for products or services with high demand and small differences

Consumers demand diverse and personalized products or services

For common products, efficient supply chains should be adopted

For products with personalized needs, agile supply chains should be adopted

There is no need to establish long-term and stable cooperative relationships with suppliers, and supplies can be obtained through market bidding.

Adopt a short-term cooperation strategy with suppliers

Establish a relatively long-term and stable cooperative relationship and reduce procurement costs

A strategy to form alliances with suppliers for the purpose of product and business innovation and long-term competitive advantage

Interviews, assessment centres, psychological tests, work samples and knowledge tests

High operational risk and high financial risk

High operational risk and low financial risk

Low operating risk and high financial risk

Low operating risk and low financial risk

Shortage of value-added cash

value-added cash surplus

Impaired cash surplus

Impairment cash shortage

①First go to developed countries with similar economic and technological development levels, and then to developing countries ②First go to developing countries with similar environments, and finally to developed countries ③Primary products such as agricultural products and mineral products and labor-intensive low-end products from developing countries flow to developed countries.

The country-specific path for exporting high-tech products is to first go to developed countries and then to developing countries.

① Managers can fully control the subsidiary's daily operating activities in the target market and ensure that valuable technologies, processes and other intangible assets remain in the subsidiary ② It can get rid of conflicts between the parties in the joint venture in terms of interests, goals, etc., thereby integrating the business strategy of the foreign subsidiary with the overall strategy of the enterprise

① This method may cost a lot of money, and the company must raise funds internally or in the financial market to obtain funds. ② Due to the lack of cooperation and participation from enterprises in the host country, it is difficult for wholly-owned subsidiaries to obtain support from local policies and various operating resources, and their ability to avoid political risks is also significantly smaller than that of joint ventures.

① Reduce capital investment in international operations ② It is helpful to make up for the shortcomings of lack of experience in cross-border operations, and is also beneficial to attracting and utilizing the resources of the host country’s joint venture partners.

①Differences in goals of the joint venture parties ②Cultural differences between the parties to the joint venture