MindMap Gallery Strategic Choice-Overall Strategy (Development Strategy)
Strategic Choice-Overall Strategy (Development Strategy) Mind Map includes: Integration Strategy (Before: Unfamiliar with the risks brought by the new business field; Beforehand: Unfamiliar with the risks brought by the new business field; After the fact: Vertical integration increases the enterprise's exit costs) etc.
Edited at 2022-03-14 12:58:37This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
overall strategy
development strategy
integrated strategy
Advantage: Save transaction costs
Disadvantage: Increased management costs
risk
Beforehand: Risks posed by unfamiliarity with new business areas
After the fact: Vertical integration increases exit costs for companies
form
Taper integration (partially realized)
Quasi-integration (except mergers and acquisitions, new construction)
vertical integration
forward integration
Advantages: Conducive to controlling and mastering the market Increase sensitivity to changes in consumer needs Improve the market adaptability and competitiveness of enterprise products
Applicable conditions: Internal advantages S: Possess the funds, human resources, etc. required for forward integration External Opportunities O: The industry has great growth potential; the sales link has high profit margins External threat T: Existing sellers have high sales costs or poor feasibility, making it difficult to meet the company's sales needs.
backward integration
Advantages: Control the cost, quality and supply reliability of key raw materials and other inputs Ensure the steady progress of production and operation
Applicable conditions: Internal advantages S: Possess the funds, human resources, etc. required for backward integration External opportunity O: The industry has great growth potential; the supplier link has high profit margins External threats T: Existing suppliers have high costs or poor reliability, making it difficult to meet the company’s needs for raw materials and parts.
horizontal integration
Advantages: Gain economies of scale
Applicable conditions
Internal advantage S: The enterprise has horizontally integrated capital and human resources Horizontal integration policies comply with antitrust regulations and can gain a certain monopoly position in local areas. External Opportunities O: The industry in which the company is located has great growth potential External threats T: Competition in the industry where the company is located is fierce The industry in which the enterprise is located has significant economies of scale
intensive strategy
New markets (new businesses, new industries) market segmentation® Market Segment® Name
market penetration
A single product gains greater market share through marketing methods The basis is to increase the market share of existing products or services or to increase the business being operated in the existing market. Goal: Increase the frequency of product use through various methods
Think about it from a market perspective
Overall growing market ®Expand market share
¨Increase advertising by offering discounts OR ¨Improve sales and distribution methods ¨Improve product or packaging to improve and strengthen its appeal to consumers and reduce costs
Guarantee market share in times of market decline®
Develop niche markets (this is especially useful if you have a smaller business compared to your competitors)
Applicable conditions
Internal advantage S: The company is determined to limit its interests to existing products or market areas The company has a strong market position and can leverage experience and capabilities to gain strong and unique competitive advantages External Opportunities O: The overall market is growing Other companies left the market for various reasons When the corresponding risk is lower, senior managers are more involved, and relatively less investment is required
Market Development
Entering new markets with existing products or services (strategy to open up other regional markets and market segments)
Reasons for implementation
¨Companies find that the nature of the production process for existing products makes it difficult to switch to producing entirely new products, and therefore want to develop new markets ¨Existing market OR market segments are saturated ¨Market development is often combined with product development
Applicable conditions
Internal advantage S: The company is very successful in its existing business field (marketing) The company has the capital and human resources (management) needed to expand operations The enterprise has excess production capacity (production) External opportunity O: There is an untapped or unsaturated market (specific opportunity) Access to new, reliable, economical and high-quality sales channels The main business of the company belongs to an industry that is rapidly globalizing (general background) (it can also belong to external threats)
product development
The original market develops new products through the improvement and development of new technologies (providing products of different sizes and colors and using different packaging for the products)
Reasons for implementation
¨Leverage the company’s understanding of the market (consumers) ¨Maintain a leading position relative to competitors (competition) ¨Enable enterprises to continue to maintain a secure position in the existing market (competition) ¨Seeking new opportunities from existing product deficiencies (producer)
Applicable conditions
Internal advantage S: The company has high market credibility and customer satisfaction (marketing) The enterprise has strong research and development capabilities (production) External Opportunity O: The industry in which the enterprise is located is a high-tech industry with rapid development that is suitable for innovation (specific opportunities) The industry in which the company is located is in a stage of rapid growth (background) External Threat T: Major competitors offer higher quality products at similar prices (product development)
Diversification Strategy
Enterprises enter areas that are different from existing products and markets
reason
¨Continuing operations in the existing product OR market cannot achieve the goal ¨The capital retained by the enterprise due to previous successful operations in the existing product OR market exceeds the funds required for financial expansion in the existing product OR market. ¨Diversification means higher profits compared to expansion in existing market OR products
Classification
Related diversification (concentric diversification) refers to the strategy of enterprises entering related industry OR markets based on existing business OR markets. Purpose: Obtain integration advantages
Irrelevant diversification (centrifugal diversification) refers to the strategy of enterprises entering areas that are unrelated to the current industry and market. Purpose: Balance cash flow OR to obtain new profit growth points and avoid development risks of the industry OR market
Whether it is related to existing business OR product related
advantage
risk
strategic cost
Industry barriers need to be overcome Reduced operational flexibility Exit costs are higher Production balance issues, etc.
strategic benefits
Economic benefits of integrated operations Reduce the cost Guarantee supply or demand Offset the bargaining power of counterparties Entering high-return fields, etc.