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Discussion 4

Number Strategy Type of Strategy

1 Amazon started producing and selling its

own line of diapers

Product Development

2. MillerCoors offers free delivery of

Miller Lite in four U.S cities for

customers who order through its online

stores

Market Penetration

3 Sears is closing about 235 stores Divestiture

4 The largest toymaker in the United

States, Mattel, is struggling, therefore, it

is introducing flashier and more

educative toys

Related Diversification

5 German power utility E. ON SE sold its

Spanish assets to Australia’s Macquarie

Group and Kuwait’s sovereign-wealth

fund for $3.1 billion.

Divestiture

6 Target Corporation is closing all of its

133 stores in Canada and China.

Liquidation

7 Coca-Cola recently axed 1,600

white-collar jobs globally as part of a

cost-cutting move.

Retrenchment

8 Nissan has totally revamped its Titan

full-size pickup truck with new features

and options and style.

Product Development

9 General Motors just introduced a sports

car version of its electric car, the

Chevrolet Volt, and is introducing an

all-electric vehicle in 2017 called the

Chevrolet Bolt, capable of driving 200

miles without recharging.

Product Development

10 SolarWinds acquired Pingdom, Confio,

and N-Able Technologies to obtain

different products and services since the

solar business has slowed as oil prices

have dropped.

Unrelated

Diversification

11 Amazon is branching out from television

series to movies, with plans to begin

producing and acquiring original movies

for theatrical release and video streaming

Related Diversification

12 ZF Friedrichshafen AG of Germany

recently acquired TRW Automotive

Holdings in the United States to create the

world’s second largest auto parts supplier

nehind Germany’s Robert Bosch GmbH

and ahead of Japan’s Denso Corp.

Horizonal Integration

13 Southwest Airlines recently began flying

outside the United States, with flights to

various Caribbean, Central America, and

Mexico destinations.

Market Development

14 Amazon is pushing aggressively into the

same-day grocery delivery service with its

AmazonFresh business along the west

coast of the United States.

Forward Integration

15 USPS has begun delivering groceries for

Amazon.com within the AmazonFresh

grocery-delivery service, especially in San

Francisco and other markets.

Joint Venture

16 USPS also recently launched Access

Point, a strategy that allows customers to

pick up their packages at dry cleaners,

convivence stores, and pharmacies

Market Development

17 The huge food company General Mills

recently acquired Annies’s Inc. for $820

million, paying a 37 percent premium for

the firm, in order to expand its presence in

the rapidly growing organic and natural

foods category.

Market Penetration

18 Google recently entered the hotel-booking

industry by acquiring the firm called

Room 77 and expanding its ties with big

hotel firms such as Hilton Worldwide

Holdings and Radisson Hotels that now

offer virtual tours on Google. Google now

allows hotels to list their rooms on their

site, in effect bypassing travel search sites

such as Priceline Group, Expedia, and

TripAdvisor.

Horizontal Integration

19 Google recently partnered with the

medical firm Novartis to develop

high-tech contact lenses that monitor

glucose levels and other body functions

Product Development

20 Amazon recently entered the mobile

payments business and is now competing

with PayPal, ApplePay, and all charge

cards.

Horizontal Integration

21 The world’s largest furniture retailer

IKEA, recently diversified into the

insurance business, providing child,

pregnancy, and home insurance products

at its stores.

Unrelated Diversification

22 Office Depot closed nearly 500 stores in

the last three years.

Liquidation

23 The drugmaker, Dendreon Corporation,

recently filed for Chapter 11 bankruptcy.

Its major drug, Provenge, which treats

prostate cancer, never gained traction in

the market.

Divestiture

24 Symantec Corporation, known for its

antivirus software, recently split its $4.2

billion cybersecurity business away from

its $2.5 billion management information

business, making them two publicly

traded companies.

Divestiture

25 eBay recently split into two companies,

with PayPal being one and the eBay

Marketplace segment being the other.

Retrenchment

References

David, F. R, & David, F. R. (2017). Strategic Management. Concepts and Cases. A

Competitive Advantage Approach. (16​ th​

Ed.). Boston: Pearson Education, Inc.