Corporate Level Strategies

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Corporate Level Strategies
Kinds of Grand Strategies: * Stability Strategies * Growth Strategies * Retrenchment Strategies * Combination Strategies
Stability Strategies
The basic approach is ‘maintain present course: steady as it goes.’
In an effective stability strategy, companies will concentrate their resources where the company presently has or can rapidly develop a meaningful competitive advantage in the narrowest possible product-market scope consistent with the firm’s resources and market requirement's
Types of Stability Strategies * No change strategy: * Firms adopting this strategy maintain the same level of operations * Small business firms desire satisfactory level of operations rather than growth
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Types of Concentric Diversification * Marketing-related Concentric Diversification: When a similar type of product is offered with the help of unrelated technology * For example: a company in the sewing machine business diversifies into kitchenware and household appliances, which are sold to housewives through a chain of retail stores. * Technology-related Concentric Diversification: When a new type of product or service is provided with the help of related technology * For example, a leasing firm offering hire-purchase services to institutional customers also starts consumer financing for the purchase of durables to individual customers. * Marketing-and-Technology-related Concentric Diversification: when a similar type of product or service is provided with the help of related technology * for example a raincoat manufacturer makes other rubber-based items, such as, waterproof shoes and rubber gloves, sold through the same retail outlets.
Conglomerate Diversification * When an organization adopts a strategy which requires taking up those activities which are unrelated to the existing business definition of one or more of its business, either in terms of their respective customer groups, customer functions or alternative technologies

* For Example: * ITC, a cigarette company diversifying into the hotel industry * Essar Group in shipping, marine construction, oil
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