What strategy involves seeking ownership of or increased control over a firms competitors?

   The following are key business strategies:

·       Growth vector strategies

·       Horizontal  Mergers

·       Mergers and Acquisition

·        Horizontal Integration

·        Backward Integration

·       Forward Integration

·       Diversification strategies

·       competitive advantage strategies

·       The strategic triangle

·       Marketing Mix-elements Strategies.

Growth vector strategies 

Ansoff’s (1965) original product/market matrix generates four ‘growth vectors’ of market penetration, market development, product or service development and diversification.  

 Market penetration: focuses on existing strategies which may be pursued by the more efficient operation of the firm, thus reducing operating and overhead cost, or by more effective penetration of the firm’s existing markets through improved products, success ratios or better marketing to clients.

It is a strategy employed by a firm to increase the sales within its present markets with its present products .

Market Development: Firms undertake this strategy with the aim of expanding either the geographical regions or the number of market segments they serve with the products.

Product Development: Product Development is a way to increase sales in present segments by augmenting the present line.

Horizontal Mergers and Acquisition(Horizontal Integration):This means merging with or acquiring another company in the same industry.

It is classified as a concentration posture because it involves increasing the firms level of activity in its present products, markets or both.

Horizon Integration refers to strategy of seeking ownership and increased control over the firm’s competitors.

Backward Integration: This strategy entails gaining increased control over firm that produces the company’s inputs and by growing one’s supply’s systems.

Forward Integration: Forward Integration consists of obtaining control over the external portions of a firm’s marketing systems. In most cases this means acquiring a distribution system or establishing one internally.

 Diversification Strategies: Before a strategist embarks upon an external diversification, several questions should be answered. First, have all the reasonable avenues for intensive growth been ruled out as feasible ways to attain goals.They may constitute less risky methods for growth than diversification.

Two types of Diversification Strategies;

Concentric Diversification: This is development of a business with products that have marketing or technological synergies with the firm’s present products.

Conglomerate Diversification: This is combination of business units with products that represent no marketing, technological or other synergies to new customer classes. And appeal to new customer classes.

 Competitive Advantage Strategies: These are cost leadership, differentiation and focus .

The Strategic Triangle:

 Ohmae (1982)suggests that in any strategic situation, there are three main players: the corporation itself, the customer, and the competition.

He asserts further that this leads to three generic strategies: Company-based strategies, customer-based strategies and competition-based strategies.

Company-based strategies

Company-based strategies are designed to exploit the strengths of the company vis a vis the competition. This approach requires that any strategic thinking encompasses all functions in the organisation.Some of these functions will be critical to particular customers/clients and can also differentiate the company from the competition. For example, if the company has developed a knowledge-based design system this may be used to convince clients of the firm’s abilities and also to differentiate the firm from it’s less advanced rivals. 

Customer-based strategies

A company cannot address every need of every customer or client; it is essential to segment the market within particular client groups and to match the target segments to the firm’s strengths. Competitor-based strategies

Ohmae stresses the need to be aware of what competitors have to offer to client and the need to develop strategies which differentiate the organization from its rivals. Alternatively, if there is no perceived difference between organizations, then cost is likely to be a key factor.

 You can get more details on the above business strategies if you can pick a copy of my book entitled Contemporary Business Strategies and Models.