vertical integration

horizontal integration

market penetration

Market Development

product development

reason

type

advantage

risk

① Can make full use of various resources in the original production and operation fields; ② Avoid the huge capital investment and development risks necessary to develop new products and new markets; ③Avoid the cost of resource reallocation and combination; ④Prevent the imbalance caused by too fast and too hasty development.

Active reason: to meet the needs of corporate strategic restructuring

Passive reasons: external environmental reasons, internal environmental reasons

austerity and concentration strategies

Turn to strategy

abandon strategy

①The degree of specificity of fixed assets. ② Exit costs (including labor agreements, relocation costs, spare parts maintenance capabilities, etc.). ③ Internal strategic connections (relationships with other departments in terms of corporate image, marketing capabilities, financial market channels, shared facilities, etc.). ④Emotional disorders. ⑤ Government and social constraints (the government comes forward to oppose or discourage)

industry

Identity of the acquiring party

Source of acquisition funds

The attitude of the acquired party

1. Avoid entry barriers, enter quickly, and strive for market opportunities;

2. Gain synergy

3. Reduce competition and enhance control over the market.

Poor decision-making:

Inability to integrate well after mergers and acquisitions

Paying exorbitant M&A fees

Cross-border mergers and acquisitions face political risks

(1) The process of developing new products enables companies to deeply understand the market and products; (2) There is no suitable acquisition target; (3) Maintain a unified management style and corporate culture; (4) Provide career development opportunities for managers; (5) The consideration is lower because no additional amount needs to be paid for goodwill when acquiring the assets; (6) Mergers and acquisitions often produce hidden or unpredictable losses, while internal development is unlikely to produce this situation; (7) This may be the only reasonable way to achieve true technological innovation; (8) It can be carried out in a planned manner, it is easy to obtain financial support from corporate resources, and the cost can be spread over time; (9) The risk is lower. In an acquisition, the buyer may also have to bear the consequences of previous decisions made by the acquiree; (10) The cost of internal development increases slowly

(1) Competitors are added, which may intensify competition in a certain market; (2) Enterprises cannot have access to the knowledge and systems of other enterprises, which may be more risky; (3) Lack of economies of scale or experience curve effects from the beginning; (4) When the market develops very fast, internal development appears too slow; (5) High barriers to entry.

(1) The industry is in an imbalanced situation and structural barriers have not yet been fully established. (2) The behavioral barriers of existing enterprises in the industry are easily restricted. (3) The enterprise has the ability to overcome structural and behavioral obstacles, or the cost of the enterprise overcoming the obstacles is less than the enterprise's income after entering.

Economic organization form—intermediate organization; business relationship—equality, openness, complementarity, and long-term nature; business behavior—strategic cooperative behavior.

Realize resource complementation

Open up new markets

Avoid or reduce competition

Reduce coordination costs

Promote technological innovation

Avoid business risks

Not the CPPCC, fresh

Equity strategic alliance

contractual strategic alliance

Enter into an agreement and establish an alliance of cooperation and trust

Advantage

Implementation conditions

risk

Advantage

Implementation conditions

risk

Classification

Advantage

Implementation conditions

risk

Industry: low barriers to entry or existing barriers to exit.

Demand: Diverse market demands lead to high product differentiation.

Scale: Economies of scale do not exist or are difficult to achieve.

Overcome fragmentation—obtain cost advantages (cost leadership strategy) Examples: ① Chain operations or franchises; ② Technological innovation to create economies of scale; ③ Discover industry trends as early as possible.

Increase added value - improve product differentiation (differentiation strategy)

Specialization—Goal clustering (focused strategy)

Avoid seeking dominance

Remain strictly strategically binding - no maintenance

Avoid over-centralization

Understand competitors’ strategic goals and overhead costs

Avoid overreacting to new products

1) Technical uncertainty; 2) Strategic uncertainty; 3) Rapid changes in costs 4) Budding businesses and new businesses; 5) First-time buyers

developmental disabilities

opportunity

1) Shape the industrial structure. (Establish game rules) 2) Correctly treat the externalities of industrial development. (The overall interests of the industry and the individual interests of enterprises) 3) Pay attention to changes in industrial opportunities and obstacles, and take the initiative in industrial development and changes. 4) Choose the appropriate time and field to enter.

Competition: competing within an already existing market, participating in competition

Demand: Competing for existing demand

Value and cost are interchangeable: follow the law of value and cost interchange, Integrate corporate behavior into a system based on differentiated or low-cost strategic choices

Competition: Expand non-competitive market space and avoid competition

Demand: Create and capture new needs

Value and cost are interchangeable: breaking the law of value and cost interchangeability, At the same time, pursue differentiation and low cost, and integrate corporate behavior into a system

Rebuilding Market Boundaries (Core)

Focus on the big picture rather than the numbers

Going beyond existing needs – “non-customers”

Follow a reasonable strategic sequence - "utility, price, cost, acceptance"

Overcoming key organizational barriers – “cognition, resources, motivation, organizational politics”

Make execution part of the strategy

consumer market segmentation

Industrial market segmentation

Undifferentiated marketing strategy (cost leadership strategy)

Differentiation marketing strategy (differentiation strategy)

Centralized marketing strategy (centralized strategy)

product mix strategy

brand strategy

product development strategy

Basic pricing methods

Main pricing strategies

New product pricing strategy

traditional classification

Internet era

Promotional mix elements

Promotional mix strategy

1. Large batch, low cost; 2. Multiple varieties, small batch

supply chain

Distribution network

Leading (offensive), lagging (conservative), matching (robust)

Resource-to-order production: order-resource-production

Order-based production: resources-order-production

Inventory-based production: resources-production-order

Advantages: Establishing relatively solid relationships with suppliers, information confidentiality, economies of scale, high-quality supply

Disadvantages: Suppliers have strong bargaining power and are prone to the risk of supply interruptions

Advantages: Keep in touch with more suppliers to ensure stable supply; acquire more knowledge and technology; the company has strong bargaining power

shortcoming:

Find a more balanced point between the above two supply strategies, so that enterprises can not only obtain the benefits of concentrating on a few supply sources, but also make full use of the advantages of multiple supply sources.

Applicable conditions

Applicable conditions

Applicable conditions

A strategy for companies to form alliances with suppliers in order to innovate products and services and gain long-term competitive advantage. When this strategy is adopted, cooperation with suppliers often begins with the proposal of a new product concept. The design, trial production, improvement, finalization, and production of the product are basically synchronized with the supplier's product and technological innovation and are consistent with each other.

Traditional procurement model

MRP procurement model (production-oriented)

JIT procurement model (Just-in-time procurement)

VMI Procurement Model (Vendor Managed Enterprise Inventory)

Digital procurement model (Automation, visualization, standardization and controllability)

1. If rapid growth is temporary, the required funds will be raised through borrowing;

2. Rapid growth is long-term

Accelerate growth (internal investment, acquisition of related businesses)

Distribute cash surplus (increase dividend payments, repurchase shares)

Increase return on invested capital: increase after-tax operating profit margin, increase operating asset turnover rate

Reduce capital costs

Business unit for sale

Complete reorganization and sale

Traditional method (continuous method)

New method (discontinuous method)

Features: International distribution channels are more complex than domestic distribution channels: International distribution channels are usually more costly than domestic distribution channels; Exporters sometimes must sell to overseas markets through different distribution channels than the domestic market; International distribution channels often provide companies with overseas market information, including how well products are selling in the market and why.

High; close; low price or even loss in the short term; as long as the variable costs are offset, the profit can be increased.

Advantages: Complete control of daily operations; avoid conflicts of interests and goals of the joint venture.

Disadvantages: It may cost a lot of money; the ability to avoid political risks is also significantly smaller than that of joint ventures.

4 motives: 1. Strengthen existing business; 2. Introduce existing products into foreign markets; 3. Introduce foreign products into domestic market; 4. Operate a new business

Advantages: reduce investment; make up for the lack of experience in cross-border operations; attract and utilize the resources of the host country’s joint venture partners.

Disadvantages: Differences in goals of the joint venture parties; cultural differences.

High degree of globalization: High degree of global collaboration and division of labor; large number of multinational companies; high degree of product standardization Advantageous resources of local enterprises: Suitable for the domestic market or can be transplanted overseas

1) Focus on customers who like domestic products and ignore those customers who admire international brands.

2) Frequently adjust products and services to meet the special or even unique needs of customers.

3) Strengthen the construction and management of distribution networks to alleviate the competitive pressure of foreign competitors.

1) Maintain the existing market in the country while expanding to other markets

1) Establish joint ventures and cooperative enterprises with multinational competitors.

2) Sell the business to a multinational competitor.

3) Redefine your core business and avoid direct competition with multinational competitors.

4) Focus on market segments based on its own local advantages and shift its business focus to certain links in the value chain.

5) Produce products that are complementary to those of multinational competitors, or adapt them to suit local tastes.

1) Don’t just compete on cost, but measure your own strength against the leading companies in the industry.

2) Find a market that is clearly positioned and easy to defend.

3) Find a suitable breakthrough in a globalized industry. (Example: Reorganization)

4) Learn to obtain resources from developed countries to overcome their own lack of skills and lack of capital.