Question
Hin a group of three to five students visit the website and look for 3 examples in each of the following and present to the class Turnaround strategy - Captive company strategy Liquidation strategy Maintain the market share strategy Increase the market share strategy Let it fall strategy
Solution
4.1
(310 Votes)
Maia
Master ยท Tutor for 5 years
Answer
Here are three examples of each of the listed strategies. Remember, classifying real-world examples can be subjective, and different analysts might categorize them differently. It's important to discuss your reasoning for choosing these examples with your group.**1. Turnaround Strategy (Focus: Recovery from declining performance)*** **Example 1: Nokia (Partial Turnaround):** While not a complete turnaround, Nokia's shift from mobile phones to network infrastructure after its decline in the smartphone market represents a significant strategic pivot aimed at recovery and leveraging existing strengths.* **Example 2: Ford (Ongoing Turnaround):** Ford's ongoing efforts to electrify its fleet and invest in new technologies like autonomous driving can be seen as a turnaround strategy to compete in the changing automotive landscape.* **Example 3: Nintendo (Successful Turnaround):** After the Wii U's failure, Nintendo successfully turned around its fortunes with the launch of the Nintendo Switch, revitalizing its console business.**2. Captive Company Strategy (Focus: Becoming a reliant supplier to a larger entity)*** **Example 1: Semiconductor manufacturers supplying exclusively to Apple:** Some semiconductor companies dedicate their production capacity to Apple, becoming captive suppliers and relying heavily on Apple's business.* **Example 2: Parts suppliers for automotive companies:** Many parts manufacturers are heavily reliant on contracts with major car manufacturers, effectively becoming captive suppliers.* **Example 3: Software developers creating exclusive apps for a specific platform:** Some software developers focus solely on creating apps for iOS or Android, making them captive to that platform's ecosystem.**3. Liquidation Strategy (Focus: Selling off assets to maximize remaining value)*** **Example 1: Blockbuster (Forced Liquidation):** Blockbuster's inability to adapt to the changing video rental market led to its eventual liquidation and the sale of its remaining assets.* **Example 2: Toys "R" Us (Liquidation after bankruptcy):** Facing mounting debt and competition, Toys "R" Us ultimately liquidated its assets after filing for bankruptcy.* **Example 3: Circuit City (Liquidation after failed turnaround attempts):** Circuit City's liquidation followed unsuccessful attempts to turn around its declining electronics retail business.**4. Maintain Market Share Strategy (Focus: Defending current market position)*** **Example 1: Coca-Cola:** Coca-Cola consistently invests in marketing and brand maintenance to defend its market share in the competitive beverage industry.* **Example 2: Colgate-Palmolive:** Colgate-Palmolive employs strategies like competitive pricing and product innovation to maintain its market share in the oral hygiene market.* **Example 3: Toyota:** Toyota focuses on reliability and quality to maintain its significant market share in the automotive industry.**5. Increase Market Share Strategy (Focus: Expanding market dominance)*** **Example 1: Amazon's expansion into various market segments:** Amazon's aggressive expansion into areas like cloud computing, grocery, and pharmaceuticals demonstrates a clear strategy to increase market share.* **Example 2: Google's dominance in search and advertising:** Google's continuous innovation and strategic acquisitions aim to further solidify and expand its market share in search and online advertising.* **Example 3: Netflix's investment in original content:** Netflix's significant investment in original content is a strategy to attract more subscribers and increase its market share in the streaming entertainment industry.**6. Harvest or "Let it Fall" Strategy (Focus: Maximizing short-term profits from a declining product or market)*** **Example 1: Landline telephone services:** Telecommunication companies are gradually letting the landline telephone market decline, focusing on maximizing remaining profits rather than reinvesting heavily.* **Example 2: Physical media like DVDs:** As streaming services dominate, companies producing DVDs are essentially letting this market decline, focusing on extracting remaining value.* **Example 3: Older generation gaming consoles:** Once a new console generation is released, manufacturers often employ a harvest strategy for older consoles, reducing marketing and support while still selling remaining inventory.Remember to research these examples further and discuss within your group why you believe they fit the chosen strategy. Consider the companies' actions, market conditions, and overall goals. This will help you develop a strong presentation for your class.