What are generic strategies and what are they good for?
Neu-Ulm University of Applied Sciences
September 1, 2023
After this session, you should have a solid understanding of
You are able to apply the knowledge gained to real-life scenarios to describe and provide explanations for strategic decisions made by firms, particularly to develop initial guidance regarding the selection of an appropriate strategy.
Before we start: Any questions or comments regarding the different types of corporate strategies outlined by Galbraith, Craig, and Schendel (1983) and my questions?
Consumer goods:
Harvest, builder, continuity, climber, niche & cashout
Industrial products:
Low commitment, maintenance, growth & niche
Form small groups, write down the definition and find examples for each of the following strategies:
Forward integration, backward integration, horizontal integration, market penetration, market development, product development, and diversification
Look at each example and find reasons for selecting the strategy—does it make sense?
According to Mintzberg (1988) families of strategies can be divided into five broad groups:
Locating the core business, distinguishing the core business, elaborating the core business, extending the core business & reconceiving the core business
Extending the core business by means of integration strategies usually involve merging with or acquiring another firm.
Create and capture value without intense competition by means of
Identifying and converting noncustomers, four actions & six paths
The following questions are designed to review and consolidate what you have learned and are a good starting point for preparing for the exam.
Read Hallegatte (2009) and make notes on following questions: