Management and Organizational Studies 4410A/B Lecture Notes - Lecture 3: Snapple, Pantone, Rexall
13 Oct 2018
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Diversification strategies: related diversification (i. e. similar industry, unrelated diversification (i. e. different industry) Porter"s three essential tests: attractiveness, cost of entry, ___ In-class example: quaker and snapple: snapple was an independent company very successful, the ceo at quaker wanted to acquire snapple (asking for billions, acquired, but the company didn"t do well and ended up being sold for only. 300,000 million: unsuccessful story of unrelated diversification. Core competencies three criteria for value creation and synergy: superior customer value, different businesses are similar in at least one way to the core competency, core competency must be difficult to imitate or substitute. Walmart is providing affordable, large variety products (they were able to do this because of strong supply chain management) Sephora uses pantone to swatch customers face colour. Intensive: market penetration, existing cost, existing product, e. g. coupons, advertisements, new locations in existing market (e. g. pushing the product, market development, new cost, existing product, e. g.
