Multi-Domestic
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High pressure to adapt the product; Low pressure to lower costs
Steps a company should follow if they want to focus on a strategy focused on the
cost advantage
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, 1. Scale up production/facilities
2. Cost control and R&D and overhead
3. Focus on innovation of process (rather than product)
4. Avoidance of marginal customers
Ex: Wal-Mart, Liddle, Aldi
Types of Diversification
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1. Related
2. Unrelated
"Star" businesses
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High market share; High industry growth rate: Keep investing!
Economies of scope
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1. Sharing activities
2. Transferring of core competencies
Give this one a try later!
High pressure to adapt the product; Low pressure to lower costs
Steps a company should follow if they want to focus on a strategy focused on the
cost advantage
Give this one a try later!
, 1. Scale up production/facilities
2. Cost control and R&D and overhead
3. Focus on innovation of process (rather than product)
4. Avoidance of marginal customers
Ex: Wal-Mart, Liddle, Aldi
Types of Diversification
Give this one a try later!
1. Related
2. Unrelated
"Star" businesses
Give this one a try later!
High market share; High industry growth rate: Keep investing!
Economies of scope
Give this one a try later!
1. Sharing activities
2. Transferring of core competencies
