A famous example of such a company is Amazon. After being successful at selling books, they started selling electronics and various other products in order to not only increase their profits, but also their market base and customer reach, fulfilling the needs and demands of the market. This can also be done by expanding into new and different geographic markets and locations. In business, horizontal integration is a strategy where a company creates or acquires production units for outputs which are alike - either complementary or competitive.
On one side we have "the organic growth which is done by increasing turnover of existing business and on the other side we have the inorganic growth that is done by the acquisition of another business" (Davis Service Group, 2008, p.2). In other words, the organic growth is done internally by increasing the production, customers, sales, and profits, instead, the inorganic growth is done with the help of other companies, by making a joint venture with other companies. Example of organic growth in our case is represented by the Sunlight and Berendsen company, two of the group companies which were able to learn one from the other and increase their customers in the places each of them already perform. By joining their forces, by sharing their resources and ideas and by taking advantages of the structures and customers each of them already has, a plan was put in place and the group could see the profits increase. Another example of organic growth for any company is by promoting their products through marketing advertising which will increase their brand awareness and bring new sales.
H&M is aiming to compete with their competitors by increasing their resources through all the markets (H&M - Expansion Strategies, 2017). H&M has the future expansion strategy to pursue licensing and H&M can use licensing to enter Asian countries such as Ethiopia by building new factories for H&M supplies (H&M - Expansion Strategies,
Costco builds new warehouses and offices in other countries. There are many incentives associated with building new retail outlets in other countries such as access to more consumers and products. Costco applies new infrastructure and business laws in accordance with whichever country it is located in (Costco’s Global). By doing so, they gain access to new markets and new consumers while also avoiding economic and trade barriers. Costco also makes a point of tailoring each of its stores to the local culture by seeking out local retailers and providing local cuisine (The Costco Craze).
Macy's Distribution and Marketing Plan In the ever-evolving realm of retail marketing, the recent trend has big Brick and Mortar retail stores such as J.C. Penny and Macy’s switching gears and incorporating online sales known as Brick and Click. Brick and Click refers to the marketing strategy in which a retail corporation sells their products both an online store (clicks) and a walk-in store (bricks) and integrates the two into a single operation. The goal of this retail strategy is to allow the customer base a multi-channel shopping experience whereby access is granted to the products through either physical in-store experience or an online purchase. The purpose of this report is to discuss department store mogul Macy’s approach to multi-channel
1. Market Penetration requires increasing the existing product sales in the existing market. The main strategic objective is to obtain more market shares or get the position of market leader. As an example: Aldi followed the market penetration strategy by opening thousands of stores across UK offering the same products. 2.
The first method that they utilized was that they switched from a vertically integrated brand structure to a functional multi-rand structure. The functional multi-rand structure helped Adidas by creating a global sales function that is responsible for commercial activities and marketing for both brands. With a global sales function, it allows Adidas to split Reebok and Adidas into wholesome and retail department, which allows them to cater to the various necessities of both brands. The second method that they utilized was by focusing their investments in the best possible markets and channels in foreign countries by critically evaluating buying behaviors of their consumers in order to secure shelf space for their goods. The third method that they used is that they embraced e-commerce, which allows them to appeal to their customers more efficiently and make purchasing products for consumers more
Under the leadership of Young, DPS was able to turnaround the struggling brands; notably Snapple brand, which had being facing struggles since under Cadbury. The new strategy of developing the brand involved rebranded the Snapple brand, with completely new look and taste. The marketing techniques were also changed, to offer the brand a new look and subsequently increase consumer interests. The new Snapple included new formulations for its teas to increase consumer interest, and began to focus on the health benefits of the product. DPS also began to distribute Snapple juices and lemonades in sleek 16-ounce glass bottles with labels indicating their health benefits.
Firstly, by doing export process sales for that country will increase. Exporting process is a one way to expand business and increase company sales potential. It can help expand product or services that the company earn money form, otherwise the company stuck trying to make a money only in the local market. As example ‘The Tarik’, the Tarik one of the famous beverages in Malaysia but people from other country can get it at their own country. In this case we can see that globalization give an idea for local business to expands and sell the product to other country by doing export process and its became well known for a few country which Singapore, Indonesia, Europe and
Section A A1 a) Retailing is how producers of goods and services get their products to you. Retailers get them directly from the manufacturer, which turns commodities into a finished product. They also buy the manufacturer's products from a middle-man, known as a wholesaler. This company consolidates the products from around the world and repackages them for easier marketing and distribution. Retailers are the last stop of the supply chain.