TABLE 4-4 Alternative Strategies Defined and Recent Examples Given Strategy Definition Example Forward Integration Gaining ownership or increased control over distributors Amazon began rapid delivery services in some or retailers U.S. cities. Backward Integration Seeking ownership or increased control of a firm's Starbucks purchased a coffee farm. suppliers Horizontal Integration Seeking ownership or increased control over competitors BB&T acquired Susquehanna Bancshares. Market Penetration Seeking increased market share for present products or Under Armour signed tennis champion Andy services in present markets through greater marketing Murray to a 4-year, $23 million marketing deal. efforts Market Development Introducing present products or services into new Gap opened its first five stores in China. geographic area Product Development Seeking increased sales by improving present products or Amazon just began offering its own line of baby services or developing new ones diapers and wipes.TABLE 4-4 Alternative Strategies Defined and Recent Examples Given Strategy Definition Example Related Diversification Adding new but related products or services Facebook acquired the text-messaging firm Whats App for $19 billion. Unrelated Diversification Adding new, unrelated products or services Kroger and Whole Foods Market are cooking meals, becoming restaurants. Retrenchment Regrouping through cost and asset reduction to reverse Staples closed 250 stores and reduced by 509% declining sales and profit the size of other stores. Divestiture Selling a division or part of an organization Sears Holdings divested its Land's End division to Sears' shareholders. Liquidation Selling all of a company's assets, in parts, for their The Trump Taj Mahal in Atlantic City, New tangible worth Jersey, faces liquidation.Experiential Exercise: Classifying Some Strategies in the last twenty years in USA market (Individual Work) Purpose: This exercise can improve your understanding of various strategies by giving you experience classifying strategies. This skill will help you use the strategyformulation tools presented later. Consider the following year 2305 strategies by various rms. 1. IBM began opening its own chain of retail stores to exclusively sell its own products. Instructions: 1. What type of strategy best describes the actions cited above? Indicate your answers. Teaching Notes: Students should classi' these strategies based on the 11 corporate alternative strategies described in class. You can google these companies to learn more about them especially at the time of the decision made