Please enable JavaScript.

Coggle requires JavaScript to display documents.

GROWTH STRATEGY, Examples - Coggle Diagram

- - - - Amazon has vertically integrated much of its business. Not only does it act as a marketplace for buyers and sellers – but it also offers its own products and services, as well as its own distribution channel. So in effect, it has 3 stages in the supply chain. It sources the products, markets and sells them on its website, and then distributes them .
    - - Apple, as we say, is vertically integrated. ... Apple builds great hardware, owns the core software experience, optimizes its software for that hardware, equips it with web services (iTunes and iCloud), and finally controls the selling experience through its own retail stores.
    - - Netflix, Inc. is a prime example of vertical integration. The company started as a DVD rental business before moving into online streaming of films and movies licensed from major studios.
    - - McDonald's is one of the most famous companies using vertical integration to reduce its overall costs and increase profits. ... As further proof of the vertical integration strategy, McDonalds also owns most of the land that their stores are placed on so they don't have to deal with landlords or leasing costs
- - - - The market penetration strategy’s goal is to increase the market share by selling the current stock (product/service) to the existing customer market. Awareness of products is usually gained by ads campaign
      - Eg. The world’s leading sportswear brand, Nike, hires sports athletes as the company’s brand ambassadors. The company features those sports celebrities advertising company’s products.
    - - Market development is selling the current stock (product/service) to the newer market. It means that the company has to enter into a more new market by employing new retail channels or new geographic areas
      - Eg. Starbucks has made a worldwide reputation for selling hot coffee and coffee beans at its franchises. The company has recently allowed the sale of its coffee beans in the other grocery stores as well
    - - Product development is introducing a new product/service to the current market.
      - Eg. McDonald’s started its business by offering burgers initially; the company expanded its product portfolio by offering French fries, breakfast, and soft drinks.
        Cherry Vanilla and Coke Zero, new products of Pepsico and Coca Cola, become popular in different customer market segments.