Corporate Strategy Essay Example | Topics and Well Written Essays - 3000 words - 1

Corporate Strategy - Essay Example These strategies are very workable for any company in need of expansion to adopt. The intensive strategy used by an organization can improve its market share and the revenue benefits it acquires. It is a strategy of aggregation and strategy where benefits come through expansion of the business. The business can expand its product’s range and market with the view of deeper market penetration. Market development for a business means introducing a new product in the market to achieve an increased profit margin. It also aims at reducing the total cost of produce but increase the average cost of the output (Lamb, 2011:453). Market development of a company makes a company enjoy the economies of scale and a diverse spread of the business risks. However, market development is different from product development but is more often than not confused. Product development helps the current product achieve more revenue under a new strategy. A business may improve its products that are presen tly in the market or replace it with a new product. For example, the Toyota Company always seeks for new technology to increase its vehicle fuel efficiency hence making it to be more competitive than others do. Therefore, the Toyota Company gains more sales by selling the hybrid vehicles that help reduce pollution to the environment as well (Mullins, Walker and Boyd, 2010:45). Integration strategies can be forward either backward, or horizontal. Forward integration is where a firm grows by taking over it functions forward in the chain value previously provided by manufacturers, distributors, or retailers. This takes more control over the final product and distribution strategies. Backward integration means that growth of a company may take functions that were earlier in the chain as provided by suppliers and other organizations. For example, the Toyota may make agreements with suppliers who wish to meet the JIT processing. This is a win-win deal where the company may increase its co ntrol powers over the suppliers and hence increase revenue and profit (Thomas, 2001:276). Horizontal integration is a strategy that seeks the ownership to increase control over the firm’s competitors. This form of integration increases control power of the company over the firm’s competitor and encourage mergers and takeovers by the enhanced transfer of resources and competitiveness (Armstrong and Kotler, 2002:267). Diversification strategy is also another from of cooperate strategy that seeks to increase the profitability of a company through greater sales obtained from new products and new markets. Diversification of the business can be at unit level or at the cooperate level. Diversification can be concentric, conglomerate, or horizontal. Concentric diversification focuses on portfolio creation with business relation. Conglomerate diversification refers to diversification on matters that relate to the current line of business. It aims at improving the profitability and achieving proper marketing. The case study analyses the growth strategies of the of Toyota industry in the era of currency fluctuations and the new needs of the market. The Toyota industry, founded in 1926 by the Sakichi Toyoda, manufactures and sells the automatic looms, which he had invented and perfected. Since then the Toyota Company