Business-Level Strategy: Vertical Complementary Strategic Alliances

Partnering with a competitor is becoming more and more common in today 's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as:

Establishing strategic alliances, such as Myer, Itochu Corporation, Inchcape BHD, wishlist.com). This created new distribution channels, new intellect resource base and new markets.

As a result of global competition and the constantly growing demand for new technologies, strategic alliances are becoming more crucial as its objective is to support the competitiveness of the activities concerned. This is achieved through the pooling of each other’s core competencies and specialization.

When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining

The current strategy of the company is to enter foreign markets and to succeed there. The corporate main strategy is to provide high quality product to its customers.

The corporate strategy of the business diversification is to create a synergy to achieve more performance under a single umbrella rather than diverse business units (SNU, 2016). A business diversification is to build the company shareholder value when the independent business units can perform under a single corporation as an umbrella organization instead of independent parents or a corporation. A diversified organization has many business units and each business units have its own business level strategy irrespective of whether they are related or not. A successful business diversification not only spreads the business risk across the diverse units but also adds a long term economic value to the company. The strategy for starting a new business is based on industry attractiveness test, the cost of entry and the better off test (Thompson, Peteraf, Gamble, and Strickland, 2016).

Business level strategy refers to the integrated set of actions a firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. HP is trying to gain competitive advantage through differentiation by becoming a smaller more agile force in the industry that will bring more modernized systems such as cloud and digital systems vice using antiquated IT infrastructures. The HP Enterprise will differentiate from its competitors by providing services within four component areas; transform, protect, empower, and enable which are indicative of the way the market is headed and meets the customer need. An example of an HP intended and realized business strategy is acquiring Eucalyptus, a provider of open source software for building private and hybrid enterprise clouds. This acquisition is a realized result of a three year planned strategy. (HP,

To develop such strategy mix of strategic options will be applied including Integration to deal with competition and Intensive + Diversification strategies for product and market development.

Analyze the business-level strategies for the corporation you chose to determine the businesslevel strategy you think is most important to the long-term success of the firm and whether or

A competitive strategy, or business-level strategy, is the way a business used to successfully enter and penetrate into a market (Eastwood et al, 2006), and also, to succeed in this chosen market against its competitors (Johnson et al, 2014). A company needs to develop and apply appropriate strategy to help the company to generate distinctive competences (David, 2007). Compared with the strategies implemented in other levels of operation, competitive strategy is more focused on the competition against other competitors and strategic choices to better attain market share (Harrison and St. John, 2009). According to

Corporate-level strategies are liable for market definition; they address the entire scope of the business. This strategy helps a business to diversify its service. It gives them direction in which geographic region they should operate and which service markets to strive in. “Thus, an effective corporate-level strategy creates, across all of a firm’s businesses, aggregate returns that exceed what those

Nevertheless, the vertical value chain created by Aldi benefits the company’s corporate strategy. To be a local supplier,

In order for a business or corporation to grow and expand at a calculated pace, they must be able to strategize the proper business plan to get there. A strategy is a set of analytic techniques for understanding and influencing the firm 's position in the marketplace (Raimundo, 2001). Having a business

The single and dominant business strategy, which denote relatively low levels of diversification, more fully diversified firms are classified into related and unrelated categories. A firm is related through its diversification when there are several links between its business units; for example, units may share products or services, technologies, or distribution channels. The more links among businesses, the more constrained is the relatedness of diversification. Unrelateness refers to the absence of direct links between businesses.

Business firms can use both competitive and collective strategies to manage their interdependencies. The literature distinguishes three major dimensions of competitive strategies: price, promotional, and product competition strategies (Khandwalla, 1981). Competitive strategies manage interdependence successfully if they result in advantageous competitive positions, thus forestalling interdependence and reducing decisionmaking uncertainty (Pennings, 1981). For