Used to reduce competition, collusive strategies differ from strategic alliances in that
collusive strategies are often an illegal type of cooperative strategy.
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Competition-Reducing Strategy
A diversified company with a portfolio of businesses that have only a few links
between them is called a mixed related and unrelated firm. (Used by firms seeking to
create value through corporate relatedness.)
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Related linked diversification strategy
,Factors associated with a market or with the firms currently operating in it that
increase the expense and difficulty new firms encounter when trying to enter that
particular market.
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Barriers to Entry
low level of diversification; more than 95% of revenue comes from a single business
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Single Business
have some relationship with the firm, contractual or otherwise, that may create
questions about their independence, but these individuals are not involved with the
corporation's day-to-day activities.
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Related outsiders
a reduction in the number of a firm's employees and, sometimes, in the number of its
operating units, but it may or may not change the composition of businesses in the
company's portfolio.
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, (Restructuring Strategy #1/3) Downsizing
A lump-sum payment of cash that is given to one or more toplevel managers when
the firm is acquired in a takeover bid. (Strategy Success = Low, Effects on Shareholder
Wealth = Negligible)
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Golden parachute
exists when two or more diversified firms simultaneously compete in the same
product areas or geographic markets.
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Multipoint competition
divestiture, spin-off, or some other means of eliminating businesses that are unrelated
to a firm's core businesses. (More positive effect than downsizing).
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(Restructuring Strategy #2/3) Downscoping
the acquisition of a company competing in the same industry as the acquiring firm.
Increases a firm's market power by exploiting cost-based and revenue-based
collusive strategies are often an illegal type of cooperative strategy.
Give this one a try later!
Competition-Reducing Strategy
A diversified company with a portfolio of businesses that have only a few links
between them is called a mixed related and unrelated firm. (Used by firms seeking to
create value through corporate relatedness.)
Give this one a try later!
Related linked diversification strategy
,Factors associated with a market or with the firms currently operating in it that
increase the expense and difficulty new firms encounter when trying to enter that
particular market.
Give this one a try later!
Barriers to Entry
low level of diversification; more than 95% of revenue comes from a single business
Give this one a try later!
Single Business
have some relationship with the firm, contractual or otherwise, that may create
questions about their independence, but these individuals are not involved with the
corporation's day-to-day activities.
Give this one a try later!
Related outsiders
a reduction in the number of a firm's employees and, sometimes, in the number of its
operating units, but it may or may not change the composition of businesses in the
company's portfolio.
Give this one a try later!
, (Restructuring Strategy #1/3) Downsizing
A lump-sum payment of cash that is given to one or more toplevel managers when
the firm is acquired in a takeover bid. (Strategy Success = Low, Effects on Shareholder
Wealth = Negligible)
Give this one a try later!
Golden parachute
exists when two or more diversified firms simultaneously compete in the same
product areas or geographic markets.
Give this one a try later!
Multipoint competition
divestiture, spin-off, or some other means of eliminating businesses that are unrelated
to a firm's core businesses. (More positive effect than downsizing).
Give this one a try later!
(Restructuring Strategy #2/3) Downscoping
the acquisition of a company competing in the same industry as the acquiring firm.
Increases a firm's market power by exploiting cost-based and revenue-based
