Advantages Of Corporate Level Strategy

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What were the business and corporate-level strategies implemented by UMW Holdings prior to 2011?
Strategic management is a crucial part in every organization to ensure its sustainability in the market for a long term period. Thus, in building up a good strategy, the organization has to consider three levels of management in the organization, which are the business level strategy, tactical level strategy and corporate level strategy. Based on the case study of UMW, there are a few strategies taken by that company in sustaining their position in the market. The strategies will be explained further below.
From 1917 to 2011, UMW Holdings did implemented two grand level strategies which are growth/stable growth strategy and turnaround strategy.
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This strategy also used by UMW Holdings as it diverse its business into the automotive assembly and distribution industry and automotive components and lubricants industry by forming a joint venture with Toyota Corporation Japan, and the oil and gas industry through acquiring local and international related companies. The vision of the company, which is “being an international conglomerate that develops industries, manages partnership and facilitates growth” has proved that the company is mainly operates on this conglomerate diversification strategy.
Other than that, UMW Holdings did use the concentric diversification strategy as one of its secondary level strategies. This sort of strategy implementation can be seen when the company, who operated as an automotive workshop and then being an agent for Pennzoil lubricants product. Besides, instead of focusing only on Toyota’s automotives, UMW Holdings diversified it business by being a major shareholder in Perusahaan Otomobil Kedua Sdn
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The products offered by this company such as the Toyota’s cars, OEMs and REMs, drilling services and heavy equipments, are difficult to compete by the other industries players as the high capital requirement needed. When people look at these products they will be able to differentiate theses products with the other companies’ products. Moreover, people are willing to pay a higher price for all these products especially for the cars rather than buy them in a lower price offered by the

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