Strategic Management

Write one paragraph comment for each post

1) Strategic alliances are formed when two or more companies work together toward a common goal. It is best to pursue an alliance when both parties will benefit from the collaboration. An example of this would be Ulta and Target. Ulta Beauty company paired up with Target to display their own section of products within Target stores. This was mutually beneficial mainly because the target market for both companies' customers would purchase more Ulta products if they were displayed within their favorite retailer, where they could get everything they need from one place.

2) A strategic direction, It seeks local responsiveness, global efficiency, and information sharing across markets. By integrating worldwide operations and taking into account the demands and preferences of local markets, businesses using a transnational approach attempt to strike a balance between standardization and adaptation. With this strategy, the company may take advantage of economies of scale on a global scale, share knowledge and best practices across markets, and successfully address local client needs.Coca-Cola has successfully captured market-specific opportunities through local adaptation, achieved economies of scale through global standardization, and fostered a worldwide solid brand presence by taking a transnational approach. This strategy has helped the business maintain its success and competitiveness in the competitive beverage sector.

3) Related diversification occurs when two or more firms within the same industry have similarities among value chain activities; both companies require the same capabilities or resources to perform the same or similar jobs. A company could pursue this approach if they are trying to build shareholder wealth- in which the company in question could leverage the similarities between itself and other entities in order to gain competitive advantage. Companies consider this approach if they plan to expand their business operations.It is also important to consider whether or not there is a strategic fit within the industry. With regard to related diversification, a strategic fit occurs when a firm enters into a new industry and still has commonalities with the firm's existing industry. One example of related diversification would be when Disney purchased ABC; TV and films are both forms of entertainment, which is the main similarity. Another example of this would be Volkswagen acquiring Audi- Volkswagen entered into a new customer market with its acquisition of Audi yet, the two companies produced vehicles which required the same value chain activities.

4) Multiple strategies can help businesses better meet the unique demands of various market segments and business units. Procter & Gamble (P&G) is one company that uses brand diversity to target diverse market categories with distinctive brands like Gillette and Old Spice. On the other hand, P&G implements brand consolidation in its home care segment, putting special emphasis on creating a powerful flagship brand like Tide. P&G is able to maximize performance, adjust to market changes, and increase market presence and profitability thanks to its multi-strategy approach.

5) One of the most important factors to selecting a strategy is actually deciding WHEN to make the move. Timing can have a huge advantage on the impact on the competitive market, and making the first move can sometimes make or break competitive advantage. One example of this is when being one of the first competitors in the market plays a huge role in reputation and loyalty. The book uses Open Table, the online reservation site, as a prime example of this. Great examples in other industries include Kleenex and Band-aid, who's early positions in the health-care industry even pioneered the products as their brand names.