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Chapter 6 - Coggle Diagram

- - - - Related
        
        Horizontal
        
        Make use of current capabilities by development into activities that are competitive or complementary
        
        Vertical
        
        Expands forwards or backwards within existing value network
        
        Advantages
        
        Secure supply
        
        Stronger relationship with final consumer
        
        Create barrier to entry
        
        Share of profits at all stages of value network
        
        Disadvantages
        
        Demand of supply are depending on one company
        
        Fails to benefit from economies of scale
      - Unrelated
        
        Conglomerate diversification
        
        Advantages
        
        Risk-spreading
        
        Improved profit opportunities
        
        Escape from declining market
        
        Use an organisation image and reputation
        
        Disadvantages
        
        Dilution of shareholders' earnings
        
        Lack of common identity and purpose
        
        Failure in one business may drag down the rest
        
        Lack of management experience.
        
        International diversification
        
        Globalisation
        
        Growing interdependence of countries
        
        Ethnocentrism
        
        Focus on domestic market
        
        Sees exports as secondary
        
        Polycentrism
        
        Necessary to adapt marketing programme to each local environment
        
        Decentralises marketing management
        
        Loss of economies of scale
        
        Geocentrism and regiocentrism
        
        Global strategy that is fully responsive to local market differences
        
        Think globally, act locally