Strategic Management
Strategic Management
4th Edition
ISBN: 9781259927621
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Chapter 8, Problem 1DQ
Summary Introduction

To explain: The kind of strategy incorporated by Company WT.

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Explanation of Solution

Kind of strategy incorporate by Company WT:

When the industry is a big box retail firm the discussion on differentiation will be a valid concept. The decision made by Company WT would be a corporate level diversification. The grocery industry is different from other businesses such as clothing retailers. They were brought together by organizations on later stages. Company WT then moved the whole firm to the perishable foods and grocery items industry. The company should compete at the corporate level. They must compete with other firms by following a business level strategy.

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Coca-Cola’s Diversification You may be familiar with the story of New Coke. To recap, in the mid-1980s, Coca-Cola reformulated its flagship soft drink in an attempt to better compete with Pepsi. The new drink, named New Coke, failed miserably. But Coca-Cola saved its business by rereleasing the original formulation of Coke under the name Coca-Cola Classic. That, in and of itself, is an excellent case study in business management. However, the more contemporary story is how Coca-Cola has changed its business plan so that no one drink—not even Coke—can heavily influence the company’s success and failure. After years of diversification and acquisition, Coca-Cola currently offers more than 500 brands ranging from soft drinks to fruit juices to water. Additionally, it sells its products in over 200 nations. Nokia’s Market Shift Not so long ago, Nokia was one of the leading makers of cell phones. But technological innovations like the iPhone left Nokia struggling to compete. The solution?…
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