Corporate Level Strategy
Corporatelevel strategy refers to the actions taken by a management to competesuccessfully. It refers to the strategic choices of opportunities,identifying and meeting consumer needs as a way of building acompetitive advantage. The strategy of concentration refers tocompeting in a definite market niche with a narrow scope. A firm inthis case can focus on a single target market or a certain type ofproduct basing on either demographical or geographical factors.Vertical integration strategy is when a firm is in different marketsor industry simultaneously with a view to gaining a competitiveadvantage. Whereas related diversification refers to expandingexisting product line or market, unrelated diversification is when abusiness adds completely unrelated or new products line or market.
MarriotInternational uses concentration strategy by targeting the workingclass. Their hotel suites and restaurants are best for executivemeetings, seminars and workshops. They have engaged in verticalintegration as they have many services including tour guide,accommodation, holiday making, general entertainment andtransportation complementing each other at every stage. They also usethe company’s reservation system and brand name to expand and rundesired products and services. The unrelated diversification is whenthey compete in tour guide, public transport, real estate andaccommodation and hotels, which are different industries. Forrelated diversification, they have expanded to over 35 countries.This way, they have a sustained competitive advantage and canovercome major economic meltdowns. It is also impossible for theirrivals to copy some of the things they do. Newer firms may not matchthem sooner because of their sheer size.
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