Types of Strategies Stability

Steel Authority of India has adopted stability strategy because of over capacity in steel sector. Instead it has concentrated on increasing operational efficiency of its various plants rather than going for expansion Vodafone has adopted stability strategy , Since November 2008 we have seen tangible evidence of accelerating mobile data adoption where consumers and business customers are seizing the benefits of fast, reliable mobile data networks using smartphones and other mobile data devices such as tablets. Vodafone has returned to organic revenue growth and gained revenue market share in the majority of our markets.

Incremental growth
Sunfeast company was firstly producing biscuit items only like marie, tiger , etc and was one of the best companies in producing biscuits company , but now it has entered into producing noddles also to increase their company

Profit strategy

Apple company is a good example of a company using profit-oriented price. Apple products are almost always the most expensive in their category. These products are also typically considered innovative and high quality. The company does not typically price to match the competition. It very rarely uses sales or discounts to encourage volume pricing. Instead, Apple relies on its reputation and strong fan base to accept and purchase its products at a price it sets internally to generate desired profits.

Another example of a company that uses primarily profit-oriented pricing is HarleyDavidson, the famous motorcycle manufacturer. The Harley brand is world-renowned. Its

customers are fiercely loyal and its products have a reputation for quality. This allows the company to set pricing based on desired profit margin, rather than relying on sales designed to increase volume or matching its competitors' pricing. By setting itself apart from the competition as a brand, this company paved the way for a premium pricing strategy that work

Sustainable growth strategy

Catalyst Paper Corporation adopted Sustainable growth strategy .Catalyst Paper Corporation, a Canadian pulp and paper company, uses its own by-products (biomass) to power its operations. It also regains heat from effluence to warm process water and thereby further reduce its carbon. Sustainable Growth Strategy adopted by Railway Construction Company , The company is one of the worlds leading enterprises in the engineering and construction sector. Accenture helped a railway construction company in defining a long-term sustainable business growth strategy. This railway construction company was benefiting from the governments economic stimulus plan for large-scale infrastructure investment. It wanted to take advantage of the favorable policies and define a business strategy to provide direction for a five-year period and ensure sustainable development in the long term across its corporate and core business lines.

Stability as a pause strategy

Dell adopted stability as a pause strategy. In the early to middle 1990s, Dell computer had to pause and allow its business time to build the infrastructure and personnel to support its current sales level. A pause and proceed with caution strategy is common following periods of rapid and continuous growth. In the India shoe market dominated by Bata and Liberty, Hindustan Levers better known for soaps and detergents, produces substantial quantity of shoes and shoe uppers for the export market. In late 2000, it started selling a few thousand pairs in the

cities to find out the market reaction. This is a pause proceed with caution strategy before it goes full steam into another FMCG sector that has a lot of potential

Growth strategy
The case of Nokia goes over the growth strategies adopted by Nokia to counter competition from domestic players in the Chinese cell phone market. Unilever introduced Sunsilk shampoo in US. Was sold in Europe, Latin America and Asia.

Concentric expansion
Bajaj Auto: It involves minimal organizational changes. It enables the firm to master one or a few businesses and enable it to specialize by gaining an in depth knowledge of these businesses Hindustan Lever expanding the sale of detergent powder in rural area , it has already a large demand of product in urban areas .

Market penetration
In order to increase market share in Singapore, NTUC FAIRPRICE has opened 24-hour store (FAIRPRICE EXTRA) to provide more conveniences to customer especially working adults as this customer category usually unable to shop during normal operation hour. It helps customer to have alternative choice and improve crowded and long queue problem during weekend. Eg. :Reliance has captured substantial market share in textile yarn and intermediaries Eg. : ITC has captured substantial market share in cigarettes.

Market development
E.g.: XEROX Company educated small business entrepreneurs to create new markets. Some of the companies which have made keen attempt to develop rural market are HUL (personal products), Colgate (oral care products), LG (TV), Videocon (Consumer durables), etc.

Product development
Frito-Lay removed trans fats from its salty snack products. Products were modified without introducing new brands and no change in market potential. Still salty snack foods market and even those non-buyers who didn't buy for health reasons, say concern over trans fat, were in Frito-Lay's target market. Indeed, this was a way to reach those nonbuyers. Coca-Cola launched Diet Coke Sweetened with Splenda. It is a new product and still in soft drink market or even diet soft drink market, hence there is no increase in market potential. \

Vertical integration
The Indian petrochemical giant Reliance Industries is a great example of vertical integration in modern business. Reliance's backward integration into polyester fibres from textiles and further into petrochemicals was started by Dhirubhai Ambani. Reliance has entered the oil and natural gas sector, along with retail sector. Reliance now has a complete vertical product portfolio from oil and gas production, refining, petrochemicals, synthetic garments and retail outlets. American Apparel is a fashion retailer and manufacturer that advertises itself as a vertically integrated industrial company. The brand is based in downtown Los Angeles, where from a single building they control the dyeing, finishing, designing, sewing,

cutting, marketing and distribution of the company's product. The company shoots and distributes its own advertisements, often using its own employees as subjects. It also owns and operates each of its retail locations as opposed to franchising. According to the management, the vertically integrated model allows the company to design, cut, distribute and sell an item globally in the span of a week. The original founder Dov Charney has remained the majority shareholder and CEO. Since the company controls both the production and distribution of its product, it is an example of a balanced vertically integrated corporation.

Backward integration
TOYOTA has agreement with its suppliers those promise to meet its JIT processing. It helps to improve cost of inventory and cash-flow. TOYOTA able to increase control powers these suppliers by investing suppliers business development. This is win-win deal as TOYOTA also involved itself into suppliers businesses also help to increase revenue and profit at time same. Nirma undertook backward integration by setting up plant to manufacture soda ash and linear alkyl benzene, both important inputs for detergents and washing soaps, to strengthen its hold in the lower-end detergents market.

Forward integration
many companies like Bata, DCM, Bombay Dyeing, Raymonds and Reliance have set up their own retail outlets to sell their fabrics. Canadian communications giant Rogers is an example of forward integration. The company established Rogers TV, a subsidiary company that operates local television channels. The Rogers TV channels show programs such as cooking and talk shows, which are produced by Rogers-managed television studios. These provide Rogers with an opportunity to advertise and sell its digital products using an electronic version of a retail store.

Horizontal Integration
Aditya Birla Groups acquisition of L&T Cements from Reliance to increase its market dominance is an example of horizontal integration A common successful horizontal integration example is how Intel (INTC) has dominated the computer processor market, supplying such chips to several different manufacturers, such as Dell (DELL) , Toshiba (TOSBF) , and the Hewlett-Packard Company (HPQ) . Solidaire India Ltd. is a prominent manufacturer of TVs and has a sizeable presence in the market in southern India. It started with the name of Hi Beam Electronics Ltd. in 1974. Subsequently, this unit was merged with two other units to form a consortium called TriStar Electronics. In 1978, the brand name Solidaire was adopted. In this manner the growth strategy of the company started with Horizontal Integration.

Diversification
Kesoram Cotton Mills into textiles, cellophane paper, firebricks, cast-iron pipes, and cement. ITC Ltd. (a cigarette major) into hotel, paper and packaging; edible oils,etc.

Concentric diversification
NOKIA launched new features mobile phone which allows consumer surfing internet and mailbox. It helps to create competitive advantages to NOKIA Microsoft launched its first personal computers that double as entertainment centers

 Technology related
TATA COMPANY along with electronic items, also producing salt items such as tata namak and all. Maggi" one of the favorite food item of young people is their most favorite because of the addition of various flavors. This is only possible because of technology related concentric diversification.

Market related
The case of Caf Coffee Day provides insight into how the company concentrated solely on coffee retailing and became a leading coffee chain in a primarily coffee-drinking nation and expanded into international markets as well

Conglomerate diversifaction
Indian company which have adopted apart of growth and expansion through conglomerate diversification the classic examples is of ITC, a cigarette company diversifying into the hotel industry The video-rental firm Blockbuster may acquire the DVD and music direct-marketing firm Columbia House

Merger
In the 1999 merger of Glaxo Wellcome and SmithKline Beecham, both firms ceased to exist when they merged, and a new company, GlaxoSmithKline, was created merger was there between Centurion Bank and Bank of Punjab. Worth $82.1 million (Rs. 3.6 billion in Indian currency), this merger led to the creation of the Centurion Bank of Punjab with 235 branches in different regions of India. Big oil got even bigger in 1999, when Exxon and Mobil signed a $81 billion agreement to merge and form Exxon Mobil. Not only did Exxon Mobil become the largest company

in the world, it reunited its 19th century former selves, John D. Rockefellers Standard Oil Company of New Jersey (Exxon) and Standard Oil Company of New York (Mobil). The merger was so big, in fact, that the FTC required a massive restructuring of many of Exxon & Mobils gas stations, in order to avoid outright monopolization. ExxonMobil remains the strongest leader in the oil market, with a huge hold on the international market and dramatic earnings. In 2008, ExxonMobil occupied all ten spots in the Top Ten Corporate Quarterly Earnings (earning more than $11 billion in one quarter) and it remains one of the worlds largest publicly held company (second only to Walmart).

Acquisition or takeover
An example of a business takeover is that of Cadbury by Kraft foods in 2010. There was uproar by the British public when it was announced and rumours of staff reductions and operations closures spread and produced a negative effect for Kraft. Kraft had to borrow over $7billion to fund the takeover and this increased its already unstable debt problems. A major reason for the takeover was for Kraft to increase its brand range and acquire the Cadbury chocolate brand. Airtel acquired Zain in Africa with an amount of US $ 10.7 billion to set new benchmarks in the telecom industry. Zain is known to be the third largest player in Africa and being acquired by Airtel it is deliberately increasing its base in the international market.

 Joint venture
Joint Venture between Virgin Group and Tata Tele Services : Virgin has partnered with Tata Telecom services in India keeping its rates for outgoing calls in line with those of competitors. The new mobile operator is the first nation-wide youth focused mobile service and the first CDMA service where all customers will be on RUIM (SIM)-based phones.. Joint Venture between Tyson Foods and Godrej Agrovet : Tyson Foods, Inc in an effort in the direction of extending their companys international presence has purchased 51% ownership of Godrej Foods, Ltd., based in Mumbai. This joint venture between Godrej Agrovet and Tyson will be called Godrej Tyson Foods.Their objective is to expand the capacity of the poultry plants which are already in operation. Nestl and Pillsbury recently formed a joint venture named Ice Cream Partners USA based in northern California. The new company primarily sells super premium ice cream that is high in fatand price. Super

premium ice cream sales were up nearly 13 percent in 1998.

Strategic alliance
Jet airways-Kingfisher Alliance market leaders with share of Jet 30% kingfisher 29% .Economic slowdown and high ATF prices resulted in decline of air travel both in international and domestic segments of the air travel market. Airline sector is set to incur a loss of $ 2bn (Rs.10,000 Crore) this year Thus Jet and Kingfisher have decided to form an alliance in fields including fuel management, ground handling, sharing of technical resources and crew for training and cross-utilization on similar aircraft types. This will help both carriers to significantly rationalize and reduce costs and provide improved standards of service and a wider choice of air travel options to consumers with immediate

effect. They could not merge as of rule that two airline companies with combined market share greater than 40 % cannot merge in India. So they formed an alliance. Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide in-house coffee shops, benefiting both retailers. In 1996, Starbucks partnered with Pepsico to bottle, distribute and sell the popular coffee-based drink, Frappacino. A Starbucks-United Airlines alliance has resulted in their coffee being offered on flights with the Starbucks logo on the cups and a partnership with Kraft foods has resulted in Starbucks coffee being marketed in grocery stores. In 2006, Starbucks formed an alliance with the NAACP, the sole purpose of which was to advance the company's and the NAACP's goals of social and economic justice.

Retrenchment
Ford Motor Company announced a retrenchment strategy in January 2002, the companys work force worldwide was to be reduced by 35000 and several car models would be dropped from Fords line of automobiles. General motors adopted retrenchment strategy. General motors terminated thousands of employees, closed plants to kill off excess capacity and put the corporations finance subsidiary up for sale. Managers often use a period of retrenchment to stabilize a company and attempt to resolve profitability and competitiveness.

Turnaround
Kmart adopted Turnaround strategy. Kmart announced the hiring of a new CEO to guide it through a turnaround strategy. The new CEOs charge was to stabilize the current business environment and return Kmart to financial health. Government normally adopts turnaround strategy to save loss making units by infusing more funds.

Divestment
ConocoPhillips recently sold its Circle K convenience store chain to Alimentation Couche-Tard, a Canadian firm Tatas divested Excel Industries, a profit-making company, because it fell out side the Tatas' definition of core business. L&T divestment of cement units to Aditya Birla group.

Liquidation
Sprint liquidated its Web-hosting division. Liquidation at Empress Mills On May 14, 1986, the Bombay High Court appointed a provisional liquidator in the petition for the voluntary liquidation of Empress Mills at Nagpur. Empress Mills was a 113-years-old mill owned by the Tatas. Behind the liquidation petition lay a host of reasons.The major strategic cause for liquidation lies in the fact that for nearly 50 years, Empress Mills did not invest in modernization or keep pace with competition. In the wider context, the government policies did not prove favourable for the cotton textile industry. The management of the mill carried the blame for neglect and delayed action.After Mr.Ratan Tata took over as chairman of the company in 1977, some efforts were made for modernization but these proved to be grossly insufficient. A proposal to merge the mill with other textile units of the Tatas could not materialize. Rationalization of the product-mix across these units also proved to be a non-starer owing to resistance offered by executives.Efforts to negotiate a voluntary retirement scheme to cut down on the 6000 workers-employees strength also failed. Ultimately, the banks and financial institutions delayed the formulation of a rehabilitation package that could turn the mill around. The state government apparently did not provide the much needed political support that could have helped save the jobs of the workers.

Combination
Tube Investments of India (TI), Company adopted Combination Strategies to deal with the complexity of the environment The Tube Investments of India (TI), aMurugappa group company, has created strategic alliances in its three major businesses : tubes,

cycles, and strips. In cycles, it has entered into regional outsourcing arrangements with the UP-based and Hamilton Cycles in the western region. In steel strips, TI has enteredinto a manufacturing contract with Steel Tubes of India, Steel Authority of India, and the Jindals The Maxwell House Division of Kraft General Foods pursues production/distribution efficiency with its regular ground coffee, but high perceived uniqueness with some of its other offering, such as Colombian Supreme (Nayyar , 1993). Although the combination of line breadth with efficiency is difficult to achieve, Kraft is able to do so via its massive distribution efficiencies associated with its size and experience in the prepared foods market.

Focus strategy

Nokia serves a broader market with wide range of products Apple Inc serves a narrow market with premium product range.

Cost leadership strategy

Southwest Airlines
The airline industry has typically been an industry where profits are hard to come by without charging high ticket prices. Southwest Airlines challenged this concept by marketing itself as a cost leader. Southwest attempts to offer the lowest prices possible by being more efficient than traditional airlines. They minimize the time that their planes

spend on the tarmac in order to keep them flying and to keep profits up. They also offer little in the way of additional thrills to customers, but pass the cost savings on to them

Ikea
The Swedish furniture retailer Ikea revolutionized the furniture industry by offering cheap but stylish furniture. Ikea is able to keep its prices low by sourcing its products in low-wage countries and by offering a very basic level of service. Ikea does not assemble or deliver furniture; customers must collect the furniture in the warehouse and assemble at home themselves. While this is less convenient than traditional retailers, it allows Ikea to offer lower prices that attract customers.

Differentiation strategy
Apples Differentiation strategy for computers and portable electronics has been consistent since the introduction of the Macintosh in 1984: integrated hardware and software from a single supplier. Apple's design skills and a pricing point that allows them to command a highly profitable market segment. This strategy is now applied to their desktops, laptops, music players and cell phones. Dr. Pepper with a different taste; Federal Express with superior service; Caterpillar with high spare parts availability; Wal-Mart with value and more for your money; Rolex as a prestige brand; and 3M Corporation with its emphasis on technology leadership and innovation.Actions to obtain a significant value difference that customers will appreciate and be willing to pay for and which may increase their product/service loyalty. McDonalds is differentiated by its very brand name and brand images of Big Mac and Ronald McDonald. SONY follows this strategy and charge premium for their products relative to the other competitors.