There are basic guidelines for when various strategy options have historically been most effective.
These are the basic 11 types of strategies for a manufacturer of steel office desks:
- Forward integration: opens retail stores to sell its desks.
- Backward integration: purchases a steel mill to control its supply of steel at a reasonable price.
- Horizontal integration: purchases a competing desk manufacturer.
- Market Penetration: launches a loyalty program to reward a company that buys a large number of desks for their many global subsidiaries.
- Market Development: begins to offer desks in India, a new geographic market area for the company.
- Product Development: develops a special desk with a steel cabinet for electronics.
- Related Diversification: the company will now manufacture and sell steel chairs.
- Unrelated Diversification: the company will offer a credit card for its customers.
- Retrenchment: the company is cutting jobs in 20 markets in the west.
- Divestiture: the company is selling off its plastics division.
- Liquidation: the company is selling off the equipment previously used in its now defunct plastics division.