“ANALYSIS OF CURRENT STRATEGY” Corporate level of strategy: A corporate strategy should enable a company, or one or more of its business units, to perform one or more of the value creation functions at a lower cost or in a way that allows for differentiation and a premium price. .(Hill&jones 2013,p.334). Consequently, as the level of corporate strategy tom tome used integration method which has the most prominent integration was Horizontal integration and horizontal alliance. Furthermore as the level of corporate strategy the related diversification also implemented. Analysing the current strategy of tom -tom, it has made various mergers and acquisition as well as partnership that have positioned the economy well. Horizontal integration is the process of acquiring or merging with industry competitors to achieve the competitive advantage that arise from a large size and scope of operations. (Hill and jones2013, p. 311) Following the year s 2006-2008, Tom tom made strong it by making three key strategic acquisitions. Data factory AG was acquired to power Tom Tom work through Web fleet technology, while applied Generics gave its technology from mobility solution. However the most prominent of these three was the acquisition of Tele Atlas. Those types of acquisition made the company horizontal integration. By having these patents, the company has protected itself against its competition and other companies trying to enter into the market. Strategic alliances are Long-term agreements between two or more companies to jointly develop new products or process that benefit all companies concerned. (Hill and jones2013, p.324) Similarly, in the case of tom tom also built a partnership with advanced integrated Solution, adding an itine... ... middle of paper ... ...n the operating margin in the year 2006. The quarterly sale by the company has shown a rise in the revenue by 368 million pounds in the first quarter of the year 2009. In the second quarter of the year 2009, the revenue turned out to be 453 million pounds. The business led to a leap by diversifying into a huge market. It tends to create a more responsible target for the company that has led the company into expansion and more amount of turn over profits. The company emphasized on phone based navigation as well. This is circulated in the series of smart phones for creating its wide use and increasing the popularity of this application. References: Charles W.l.Hill &Gareth R .Jones 2013 An integrated Approach: Strategic management 10 th edition. Tom Tom for Business and Government, Craig M. (2009),
Vertical integration is essentially described as a process which enables the company to get a competitive advantage by means of differentiation. However, the process irrespective of its inumberable benefits is flawed because it sometimes creates unfair competition. In order to defend the interest of the competition, the government has set in place antitrust laws.
...epts of the transaction cost economics theory in order to understand the rationale for its structure along the vertical chain. It concludes this examination by suggesting that BlackBerry’s primary motivation for its strategic alliance with Foxconn, is to exploit Foxconn’s scale and learning economies. Foxconn’s motivation is to alter its structure along the vertical chain in order to align to its new business strategy. This provides further evidence to support Alfred Chandler’s theory that structure follows strategy (Chandler, A. 1998 cited in Besanko, D. et al. 2010).
In the second part, we will describe the technology developed to support each strategy. As well as the cost of the components associated with each strategic technology unit that aims to deliver a differentiated proposition and increase it’s value. A cost breakdown structure and the results in sales and revenue are studied in this section.
To accomplish the company’s long-term objectives the follow strategies have been put into place: forward/backward/horizontal integration,
The company also acquired Mobiata which is the creator of best mobile applications of travel.
In order to identify Vodafone’s competitive advantage, first it is necessary to analyse the strengths and weaknesses within their current SWOT analysis. (Figure 2)
It will be fairly interesting how this will guide the company in 2014 and ahead of. In definite categories they are leaders in their industry and have developed rapidly in recent years. They countenance stiff competition from additional players in the industry however, and it is advocated that they slow their belligerent growth strategy in the short term to center on reducing costs to advance current margins.
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.
158). It is expected that a corporate-level strategy will help the firm earn above-average returns by creating value. The corporate level strategies that are used by Seprod are vertical integration and diversification.
Of the strategies used to implement vertical integration authors Meyer and Wang expressed their feelings about influential economic factors in the following quote:
Horizontal integration is the process of acquiring or merging with industry competitors (ex. acquisitions and mergers) to increase market share.
The strategic alliance approached by selling Mazda’s 25% share to Ford motor company. So it was a strategic alliance and shared ownership type. Shared ownership alliance is actually one special form of joint venture.
First, companies identify interrelationships among already existing business units in order to seek for any opportunities to transfer skills or share activities. Second, companies select the core businesses that will be the foundation of the corporate strategy by determining the attractive industry and sustainable competitive advantages. Third, companies create horizontal organizational mechanisms to facilitate interrelationships among the core business units by strong corporate identity, mission statement emphasizes integration, and incentives for business-wide success. Fourth, companies pursue diversification opportunities that allow shared activities. Fifth, companies pursue diversification through the transfer of skills if opportunities for sharing activities are limited or exhausted. In other word, it is the stepping stone for sharing activities in the future. Sixth, companies pursue a strategy of restructuring if this fits the skills of management or no good opportunities exist for forging corporate interrelationships. At last, companies pay dividends so the shareholders can be the portfolio
A strategy which is adopted by an organisation indicates what area the firm intends to do well in.