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12 Cards in this Set
- Front
- Back
Corporate-levelstrategies should be chosen to promote the success of its ______________ |
business-levelstrategies. |
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Corporate-level strategies allow a firm to ________ |
to achieve a sustainable competitive advantage, leading to higherprofitability. |
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Acquiringor merging with industry competitors to achieve the competitive advantages thatarise from a large size and scope of operations
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Horizontal Integration |
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Companyuses its capital resources to purchase another company. |
Acquisition |
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Agreement between two companies topool their resources and operations and join together to better compete in abusiness or industry. |
Merger |
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Benefits of HorizontalIntegration |
1. Lowersthe cost structure 2. Increasesproduct differentiation 3. Leveragesa competitive advantage 4. Reducesrivalry within the industry 5. Increasesbargaining power over suppliers and buyers |
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Problems with HorizontalIntegration |
1. Difficultto implement 2. Conflictwith the Federal Trade Commission (FTC) Increasein prices Abuseof market power Crushingpotential competitors |
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Whena company expands its operations either backward or forward into an industry |
Vertical Integration |
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Backward vertical integration is _________ |
Producesinputs for the company’s products |
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Forward vertical integration is __________ |
Uses, distributes, or sells the company’sproducts |
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Long term agreements between two or more companies to jointly develop new products or process that benefit all companies that are a part of the agreement. |
Strategic alliances |
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Strategic alliances becomes a substitute for ____________ |
vertical integration |