forward integration

backward integration

The need for strategic reorganization of large enterprises

short-term behavior of small businesses

External causes

Business loses competitive advantage

Mechanism change

Finance and Financial Strategy

cost cutting strategy

Reposition and adapt existing products and services

Adjust marketing strategy

Franchising, subcontracting, outright sales, management and leveraged buyouts, divestitures into shares, asset swaps and strategic trade

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

Classification by industry

Classification by attitude

Classified by status

Classification by funding source

Avoid entry barriers and avoid risks

Gain synergy

reduce competition

poor decision making

After merger and acquisition, enterprise integration cannot be carried out well.

Paying exorbitant M&A fees

Cross-border mergers and acquisitions face political risks

Structural barriers have not yet been fully established

The behavioral barriers of existing companies in the industry are easily restricted

Businesses have the ability to overcome structural and behavioral barriers

Promote technological innovation

Avoid business risks

Avoid or reduce competition

Realize resource complementation

Open up new markets

Reduce coordination costs

Joint venture

Mutual shareholding investment

functional protocol

Enter into an agreement

Establish an alliance of cooperation and trust

create barriers to entry

Enhance bargaining power

Reduce the threat of substitutes

Stay ahead of the competition

market outlook

resources and capabilities

create barriers to entry

Reduce customer sensitivity

Enhance bargaining power

Defend against the threat of substitutes

market outlook

resources and capabilities

Costs are too high, demand changes, established differences shrink or even shift

Low barriers to entry or existing barriers to exit

Diversified market demand leads to high product differentiation

There are no economies of scale or it is difficult to achieve economies of scale

Scattered customer service - gain cost advantage

Increase added value - improve product differentiation

Specialization-goal agglomeration

Avoid seeking dominance

Maintain strict strategic constraints

Avoid over-centralization

Understand competitors' strategic goals and overhead costs

Avoid overreacting to new products

common structural features

Insufficient supplies of raw materials, parts, funds and other supplies

Customer confusion and wait-and-see

Reactions to substituted products

Shape industrial structure

Correctly Treat the Externalities of Industrial Development

Pay attention to changes in industry opportunities and obstacles and take the initiative

Choose the right time and field to enter

Consumer market segmentation basis

Basis for industrial market segmentation

undifferentiated marketing

Differential Marketing

centralized marketing

Consider the size of expenses and income

product mix strategy

Brand and Trademark Strategy

product development strategy

Advertising promotion, business promotion, public relations and personal selling

direct distribution and indirect distribution

Exclusive distribution and intensive distribution

High quality and high price pricing strategy

Follow market leaders’ pricing strategies

product differential pricing

product launch pricing method

lead strategy

hysteresis strategy

matching strategy

Resource-to-order production

Order production

Inventory production

Continuous improvement, elimination of waste, good workplace organization, shortened production preparation time, full participation

Robustness, confidentiality, economies of scale, high quality

Disadvantages: Suppliers have strong bargaining power, supply is interrupted, and suppliers are affected by changes in order volume

Knowledge and technology, small interruption impact, conducive to price reduction

Quality is difficult to guarantee and supplier commitment is low, which is not conducive to economies of scale.

Sales growth rate > sustainable growth rate = cash shortage, otherwise surplus Return on invested capital > capital cost = value creation, otherwise loss

Value-added cash shortage strategic options

Value-added cash surplus strategic options

Loss-impairing cash surplus strategic options

Loss-mitigating cash shortage strategy options