MGT 3659 Chapter Notes - Chapter 8: Boston Consulting Group, Vertical Market, Vertical Integration
Document Summary
Backward vertical integration changes in an industry value chain that involve moving ownership of activities upstream to the originating (inputs) point of the value chain. Sbus are plotted into four categories (dog, cash cow, star, and question mark), each of which warrants a different investment strategy. Conglomerate a company that combines two or more strategic business units under one overarching corporation; follows and unrelated diversification strategy. Core competence-market matrix a framework to guide corporate diversification strategy by analyzing possible combinations of existing/new core competencies and existing/new markets. Corporate strategy the decisions that senior management makes and the goal- directed actions it takes to gain and sustain competitive advantage in several industries and markets simultaneously. Credible commitment a long-term strategic decision that is both difficult and costly to reverse. Diversification an increase in the variety of products and services a firm offers or markets and the geographic regions in which it competes.
