4. Critically evaluate two (2) different forms of manufacturing based geographic market development strategies? You should include both theory and examples in the answer.
4. Critically evaluate two (2) different forms of manufacturing based geographic market development strategies? You should include both theory and examples in the answer.
Homework Answers
Different forms of manufacturing based geographic market development strategies are:
- Integration
- Diversification
Integration: In manufacturing based geographic market development strategies, integration is one of the important strategies to improve their market and develop their markets. Integration is further classified into horizontal integration and vertical integration. In case of horizontal integration, the manufacturing companies merge or acquire with existing companies in the new market and thus develop their market. Eg: Apple Inc. company entering into new markets with their laptops and smart phones. In case of vertical integration, different operations of business-like marketing, production and finance are integrated under single ownership and under same company. In this, the parent company acquires all the departments and manage under the same firm. Eg: Gas station company acquiring an oil refinery, FMCG companies acquiring branding and advertising firms
Diversification: In diversification, manufacturing companies enter or establish a new business unit which is of completely different from their existing products. This diversification can occur at either business level or corporate level. Diversification will be in two ways either concentric /horizontal diversification or conglomerate diversification. In concentric/ horizontal diversification, the company enters into a new market with a new product that is mostly related to the existing product offering. In conglomerate diversification, the company enters into a new market with a new product that is completely unrelated to the existing product offerings. Eg: Samsung entering into new products, banks entering into payment gateways.
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4. Critically evaluate two (2) different forms of manufacturing based geographic market development strategies? You should include both theory and examples in the answer.
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