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Four Grand Strategies Alternatives Marketing Essay

Grand strategies are a way to get to your ends - progress, profitability, etc. The more time that you spend researching and studying your environment, your market and your business, the more clearly these enter into concentrate for you. Since there is always some uncertainty plus some risk with any business decision, a strategic decision with the proper homework done is a pretty clear chop one.

According to Glueck there are fundamentally four grand strategies alternatives:

Stability

Growth /expansion

Retrenchment

Combination

Stability

Stability strategy suggests continuing the existing activities of the company without any significant change in way. If the environment is unstable and the firm does well, then it could believe that it is better to make no changes. A firm is said to be following a balance strategy if it is satisfied with the same market share, satisfied with the advancements of practical performance and the management does not want to take any risks that could be associated with enlargement growth.

Two types of stability strategy are:

EMTEL have been a well balanced company during the recent years, despite competition from orange. EMTEL has continue to be stable and also have been over a going concern method

Phoenix beverages have also been using stability strategy the recent years because of good revenue and good performance

In general, balance strategic can be quite useful in the brief run, but can be dangerous if used for too long.

Growth/expansion

Growth strategies are the most greatly pursued corporate strategies. Companies that do business in expanding establishments must develop to survive. A company can increase internally by increasing its businesses or it can expand externally through mergers, acquisitions, joint endeavors or strategic alliances.

Growth strategies can be split into three wide categories:

Intensive strategies

Integration strategies

Diversification strategies

A. Intensive strategies

Without moving beyond your organization's current range of product and services it may be possible to entice customers by extensive advertising, and by realigning the merchandise and the market possibilities to the business.

There are three important extensive strategies:

Market penetration-seeks to increase market share for existing products in the existing markets through higher marketing initiatives.

Market development-seeks to increase market share by selling today's products in the new market.

Product development-seeks to increase market talk about by expanding new or better products for present market segments.

B. Integration

Integration fundamentally means incorporating activities associated with today's activity of a company. A company executes lots of activities to transform an suggestions to end result. These activities include from the procurement of raw materials to the production of done goods and their marketing and distribution to the ultimate customers.

Two types of integration:

Vertical integration- it includes gaining ownership or increased control over suppliers or marketers. Vertical integration is of two types:

Backward integration-involves attaining possession of firm's suppliers for example, a company of done goods might take over the business enterprise of a dealer who manufactures recycleables, component parts and other inputs.

Forward integration-it requires gaining ownership or increased control over marketers or merchants.

Horizontal integration- this is a technique seeking possession or increase control over a firm competitor's.

C. Diversification strategies

It is the procedure of adding new business to existing business of the company. In other words, diversification adds services or markets in the prevailing ones. The diversification strategy can be involved with achieving a greater market from a larger selection of products in order to maximize earnings.

Types of diversifications:

Concentric diversification- adding to new but related business is called concentric diversification. It consists of acquisition of businesses that are related to the acquiring firm in terms of technology, market segments or product.

Conglomerate diversification- increasing new, but unrelated is named conglomerate diversification. The brand new will have no relationship to the company's technology, products or markets.

Two types of growth strategy are:

Merging of Mauritius telecom

Mauritius Telecom is a telecommunications and Internet service agency in Mauritius. Mauritius Telecom was founded in July 1992 by the merger between the former Overseas Telecommunications Services Ltd and Mauritius Telecommunication Services Ltd. As from that particular date, Mauritius Telecom became the major service provider of words, mobile, Internet and data communication services in Mauritius.

In November 2000, France Telecom became the tactical partner of Mauritius Telecom by acquiring 40 percent of its shares. Following the collaboration with France Telecom, Telecom Plus Ltd launched in 2002 broadband internet access which is brand under Wanadoo ADSL. By incorporating the technological and global durability of France Telecom, and the neighborhood and regional connection with Mauritius Telecom, both companies have been able to offer ground breaking and useful technology and launched in June 2006 the Multiplay IPTV services top quality as My. T which allowed Mauritius to become one of the primary countries on earth to unveiling IPTV services.

SBM Corporate

True to its viewpoint of being near its customers, SBM was the first loan provider to establish branches in the rural areas, thus establishing a nationwide branch network. SBM is also rightly acknowledged for its business lead in technology. It was the first bank in Mauritius to bring in the Europay-MasterCard-Visa (EMV) chip credit card technology, TopUp (mobile phone recharge) and Mobile Bank as well as the first eCommerce website. The Bank has also presented, under its brand name SBM eSecure», improved security requirements for internet deals through the implementation of Verified by Visa» and MasterCard SecureCode» services. Besides, SBM is the most well-liked Visa spouse in Mauritius. Using market insights and critical thinking, the lender aims to constantly offer impressive products and services to meet the needs of its growing customer foundation.

Retrenchment / protective strategies

A company may follow retrenchment strategies when it has a weak competitive position in a few or all of the products lines producing a poor performance.

In an attempt to remove the weaknesses that are dragging the company down, management may follow a number of of the next retrenchment strategies:

Turn around- a firm is said to be ill when it faces a severe cash crunch or a regular downtrend in its operating income. Such a firm becomes insolvent unless appropriate external or internal actions are taken up to change financial picture of the firm.

Bankruptcy- this is a form of protective strategy. It allows group to document a petition in the judge for legal safety to the company in the event the organization is not able to pay its debts.

Liquidation- it occurs when a whole company dissolves and its own assets are sold. It is a strategy of final resort when there are no clients for a small business which want to be sold, the business may be finished up and its resources may be sold to satisfy debt burden.

Divesture- selling a division or part of an organization is called divesture.

Examples of retrenchment/protective strategies:

Infinity BPO

The Infinity Business Process Outsourcing (BPO) owes a total of Rs 100 million to its collectors. The corporation has been bankrupt and didn't pay his employees their salary credited to a craving for food protestation they finally received their right.

A organization may divest (sell) businesses that aren't part of its center operations such that it can concentrate on what it does best. Eastman Kodak, Ford Motor Company, and a great many other businesses have sold various businesses that were not tightly related with their main businesses.

Combination strategy

A company pursues a combo of several corporate strategies together. But a mixture strategy can be remarkably risky if completed too much. No organization can afford to follow all strategies that might benefit the company. Difficult decision must be made. Priorities must be proven. Organization like people have limited resources, so organizations must choose among choice strategies.

Examples of blend strategy are:

Texas-based textile designer Cotton Incorporated uses a push/pull promotional strategy. They push to set-up customer demand through constantly producing new products and offering the products to get; and move customers towards the products through advertising and campaign deals.

Candico's, the local confectionery company's international extension plan include a combination of organic and natural and inorganic strategies, through strategic acquisitions and mergers, joint endeavors or setting up independent processing facilities in individual market.

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