7. Strategic Choices: Corporate Strategy

Question 1

Market Penetration:

Answer 1

It involves increasing sales of existing products in existing market. This can be done through various marketing sales and initiatives, such as increasing advertising spending, offering discounts or expanding distribution channels.

Question 2

Market development:

Answer 2

This strategy involves selling existing products in new markets. This can be done by entering new geographic markets, targeting new customer segments or developing new uses for existing products.

Question 3

Product development:

Answer 3

This strategy involves developing new products for existing markets. This can be done through R&D, product innovation or acquiring new products and technologies.

Question 4

Unrelated diversification:

Answer 4

This strategy involves developing new products for new markets. This strategy is risky, but it could deliver nice rewards.

Question 5

Synergies:

Answer 5

Synergies are benefits that arise when activities or assets complement each other so that their combined effect is greater than the sum of the parts -> 2 + 2 = 5

Question 6

Vertical integration:

Answer 6

Backward or Forward integration into adjacent activities in the value chain network.

Question 7

Backward integration:

Answer 7

Development into activities concerned with the inputs into the company´s current business.

Question 8

Forward integration:

Answer 8

Development into activities which are outputs of the current business.

Question 9

Horizontal integration:

Answer 9

Development into activities which are complementary to present activities.