Review your classmates’ answers and find two answers that differ from yours on any of the company examples. Post a response to those classmates as to why their or your answer is more accurate or may need to be reconsidered.
Running head: BUSINESS STRATEGIES
1
1. . Amazon started producing and selling its own line of diapers. Backward
Integration
2. MillerCoors offers free delivery of Miller Lite in four U.S. cities for customers who
order through its online store. Market
Penetration
3. Sears is closing about 235 stores annually.
Retrenchment
4. The largest toymaker in the United States, Mattel, is struggling; therefore, it is
introducing flashier and more educative toys. Related
Diversification
5. German power utility E.ON SE sold its Spanish assets to Australia’s Macquarie
Group and Kuwait’s sovereign-wealth fund for $3.1 billion.- Divestiture
6. Target Corporation is closing all of its 133 stores in Canada and China.-
Retrenchment
7. Coca-Cola recently axed 1,600 white-collar jobs globally as part of a cost-cutting
move.- Retrenchment
8. Nissan has totally revamped its Titan full-size pickup truck with new features and
options and style.- Product
Development
9. General Motors just introduced a sports car version of its electric car, the Chevrolet
Volt, and is introducing an all-electric vehicle in 2017 called the Chevrolet Bolt,
capable of driving 200 miles without recharging.- Product Development
10. SolarWinds acquired Pingdom, Confio, and N-Able Technologies to obtain different
products and services since the solar business has slowed as oil prices have dropped.-
Unrelated Diversification
2
BUSINESS STRATEGIES
11. Amazon Studios is branching out from television series to movies, with plans to
begin producing and acquiring original movies for theatrical release and video
streaming.- Related Diversification
12. ZF Friedrichshafen AG of Germany recently acquired TRW Automotive Holdings in
the United States to create the world’s second-largest auto-parts supplier behind
Germany’s Robert Bosch GmbH and ahead of Japan’s Denso Corp.- Horizontal
Integration
13. Southwest Airlines recently began flying outside the United States, with flights to the
various Caribbean, Central America, and Mexico destinations.- Market
Development
14. Amazon is pushing aggressively into the same-day grocery delivery service with its
AmazonFresh business along the west coast of the United States.- Forward
Integration
15. USPS has begun delivering groceries for Amazon.com within the AmazonFresh
grocery-delivery service, especially in San Francisco and other markets. – Backward
Integration
16. USPS also recently launched Access Point, a strategy that allows customers to pick
up their packages at dry cleaners, convenience stores, and pharmacies.-Market
Penetration
17. The huge food company General Mills recently acquired Annies’ Inc. for $820
million, paying a 37 percent premium for the firm, in order to expand its presence in
the rapidly growing organic and natural foods category. –Horizontal Integration
18. Google recently entered the hotel-booking industry by acquiring the firm called
Room 77 and expanding its ties with big hotel firms such as Hilton Worldwide
3
BUSINESS STRATEGIES
Holdings and Radisson Hotels that now offer virtual tours on Google. Google now
allows hotels to list their rooms on their site, in effect bypassing travel search sites
such as Priceline Group, Expedia, and TripAdvisor. –
Unrelated Diversification
19. Google recently partnered with the medical firm Novartis to develop high-tech
contact lenses that monitor glucose levels and other body functions. – Unrelated
Diversification
20. Amazon recently entered the mobile payments business and is now competing with
PayPal, ApplePay, and all charge cards. – Related Diversification
21. The world’s largest furniture retailer, IKEA, recently diversified into the insurance
business, providing child, pregnancy, and home insurance products at its stores. –
Unrelated Diversification
22. Office Depot closed nearly 500 stores in the last three years. – Retrenchment
23. The drugmaker, Dendreon Corporation, recently filed for Chapter 11 bankruptcy. Its
major drug, Provenge, which treats prostate cancer, never gained traction in the
market.- Liquidation
24. Symantec Corporation, known for its antivirus software, recently split its $4.2 billion
cybersecurity business away from its $2.5 billion management information business,
making them two publicly traded companies.- Related Diversification
25. eBay recently split into two companies, with PayPal being one and the eBay
Marketplace segment being the other.- Related Diversification
Discussion 4
Number Strategy Type of Strategy
1 Amazon started producing and selling its
own line of diapers
Product Development
2. MillerCoors offers free delivery of
Miller Lite in four U.S cities for
customers who order through its online
stores
Market Penetration
3 Sears is closing about 235 stores
Divestiture
4 The largest toymaker in the United
States, Mattel, is struggling, therefore, it
is introducing flashier and more
educative toys
Related
Diversification
5 German power utility E. ON SE sold its
Spanish assets to Australia’s Macquarie
Group and Kuwait’s sovereign-wealth
fund for $3.1 billion.
Divestiture
6 Target Corporation is closing all of its
133 stores in Canada and China.
Liquidation
7 Coca-Cola recently axed 1,600
white-collar jobs globally as part of a
cost-cutting move.
Retrenchment
8 Nissan has totally revamped its Titan
full-size pickup truck with new features
and options and style.
Product Development
9 General Motors just introduced a sports
car version of its electric car, the
Chevrolet Volt, and is introducing an
all-electric vehicle in 2017 called the
Chevrolet Bolt, capable of driving 200
miles without recharging.
Product Development
10 SolarWinds acquired Pingdom, Confio,
and N-Able Technologies to obtain
different products and services since the
solar business has slowed as oil prices
have dropped.
Unrelated
Diversification
11 Amazon is branching out from television
series to movies, with plans to begin
producing and acquiring original movies
for theatrical release and video streaming
Related Diversification
12 ZF Friedrichshafen AG of Germany
recently acquired TRW Automotive
Holdings in the United States to create the
world’s second largest auto parts supplier
nehind Germany’s Robert Bosch GmbH
and ahead of Japan’s Denso Corp.
Horizonal Integration
13 Southwest Airlines recently began flying
outside the United States, with flights to
various Caribbean, Central America, and
Mexico destinations.
Market Development
14 Amazon is pushing aggressively into the
same-day grocery delivery service with its
AmazonFresh business along the west
coast of the United States.
Forward Integration
15 USPS has begun delivering groceries for
Amazon.com within the AmazonFresh
grocery-delivery service, especially in San
Francisco and other markets.
Joint Venture
16 USPS also recently launched Access
Point, a strategy that allows customers to
pick up their packages at dry cleaners,
convivence stores, and pharmacies
Market Development
17 The huge food company General Mills
recently acquired Annies’s Inc. for $820
million, paying a 37 percent premium for
the firm, in order to expand its presence in
the rapidly growing organic and natural
foods category.
Market Penetration
18 Google recently entered the hotel-booking
industry by acquiring the firm called
Room 77 and expanding its ties with big
hotel firms such as Hilton Worldwide
Holdings and Radisson Hotels that now
offer virtual tours on Google. Google now
allows hotels to list their rooms on their
site, in effect bypassing travel search sites
such as Priceline Group, Expedia, and
TripAdvisor.
Horizontal Integration
19 Google recently partnered with the
medical firm Novartis to develop
high-tech contact lenses that monitor
glucose levels and other body functions
Product Development
20 Amazon recently entered the mobile
payments business and is now competing
with PayPal, ApplePay, and all charge
cards.
Horizontal Integration
21 The world’s largest furniture retailer
IKEA, recently diversified into the
insurance business, providing child,
pregnancy, and home insurance products
at its stores.
Unrelated Diversification
22 Office Depot closed nearly 500 stores in
the last three years.
Liquidation
23 The drugmaker, Dendreon Corporation,
recently filed for Chapter 11 bankruptcy.
Its major drug, Provenge, which treats
prostate cancer, never gained traction in
the market.
Divestiture
24 Symantec Corporation, known for its
antivirus software, recently split its $4.2
billion cybersecurity business away from
its $2.5 billion management information
business, making them two publicly
traded companies.
Divestiture
25 eBay recently split into two companies,
with PayPal being one and the eBay
Marketplace segment being the other.
Retrenchment
References
David, F. R, & David, F. R. (2017). Strategic Management. Concepts and Cases. A
Competitive Advantage Approach. (16
th
Ed.). Boston: Pearson Education, Inc.