Business strategies are fundamental for the good business development of any organization. In this post we have as protagonists the integrative growth strategies, of which we will see their concept and examples.
In this case, we talk about a series of approaches that aim to broaden the spectrum of action. For example, when a company has a product that it wishes to sell to a new market segment. To do this, it is necessary to design a new strategy to offer it more effectively.
Integrative growth strategies
This is a type of strategy that requires the company to have a predominant position in its industry, even if it is not yet a leader. The reason for this is that it involves positioning itself as dominant among suppliers, distributors or competitors.
In this sense, there are 3 different types of integrative growth strategies:
- Backward: In this case, the company increases control over its suppliers or over its main supplier.
- Forward: Here, the company seeks to control the distribution channels of a company. Example: the acquisition of service stores to sell products.
- Horizontal integration: In this case, the control is over competitors. Example: what a department store does by opening spaces for other brands to sell their products.
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