5E Steps 1-2
William Neely
1. General Electric sold its NBC Universal division to Comcast for $6.5 billion.
Backward integration: Backward integration is when a company seeks ownership or
increased control over their supplier. NBC Universal supplies many channels to Comcast
for their tv services therefore this acquisition is considered to be backward integration.
2. Vision Airlines added more than 40 new cities to its flight destination portfolio.
Market Penetration: Vision Airlines is looking to offer its product in more cities and with
more people therefore it is penetrating the market.
3. J.C. Penney closed many of its stores, outlets, call centers, and its catalog business.
Retrenchment: Retrenchment is when an organization regroups through cost and asset
reduction and that is exactly what J.C. Penney is doing.
4. Citigroup sold its EMI Group Ltd. music company.
Divestiture: Citigroup is selling a division or part of its organization therefore this is
divesture.
5. Nestle S.A. acquired CM&D Pharma Ltd., the first move by Nestle to sell foods that
target diseases.
First mover advantage: Nestle is developing a new product and entering a new market
before its rivals.
6. Caterpillar recently acquired Bucyrus International, another mining equipment maker.
Horizontal Integration: Caterpillar is seeking ownership over their competitor therefore
this is horizontal integration.
7. Limited Brands opened its first Victoria’s Secret in Canada.
Market development: Limited Brands has decided to take a present product, Victoria’s
Secret, and place it into a new geographic area.
8. Wal-Mart opened 40 new supercenters in Canada.
Market penetration: Walmart is looking to increase market share by increasing their
marketing efforts and placing more stores in Canada.
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