PROJECT IDENTIFICATION

Project Identification

Project Identification

This paper is based on marketing strategy for three of the selected firms that are engaged in different businesses. The three companies selected are Ford, Microsoft, and Wal-Mart - all three being the American giants in their field of expertise. It is commonly accepted that marketing strategies play very important roles in most international organizations. Some believe that a company which plans to expand its business and want to be a successful international firm should have very effective marketing strategies. There are many different modes of marketing strategies, which are discussed below:

Marketing strategies seek to increase the size and scope of an organization. If expansion is selected as the best way to perform the mission and realize the vision of the organization, several alternatives are available. Expansion strategies include diversification, vertical integration, market development, product development, and penetration (Palich, 2000).

Diversification

Diversification strategies are selected because opportunities have been identified outside of the organization's core business that offer potential for growth (Mick, 2008). Often an organization that selects a diversification strategy is not achieving its revenue goals within its current service area or product offerings. Other organizations diversify to achieve growth in less regulated markets such as specialty business organizations.

Diversification can be a risky alternative, because the organization is entering a relatively unfamiliar market or offering a product or service that is different from its current products or services. Organizations have found that the risk of diversification can be reduced if complementary markets and products are selected (Ginter, 2007).

Vertical Integration

A vertical integration strategy is a decision to grow along the channel of distribution of the core operations. The growth of an organization along the channel of distribution toward its suppliers (upstream) is called backward vertical integration. The growth of an organization toward the consumer or patient (downstream) is called forward vertical integration.

A vertically integrated business care system offers a range of patient care and support services operated in a functionally unified manner . The expansion of services may be arranged around an acute care hospital and include prea-cute, acute, and postacute services or may be organized around specialized services related solely to long-term care, mental business care, or some other specialized area. The purpose of vertical integration is to increase the comprehensiveness and continuity of care, while simultaneously controlling the channel of demand for business care services.

Vertical integration can reduce costs and thus enhance an organization's competitive position. Cost reductions may occur through lower supply costs and better integration of the “elements of production.” With vertical integration, management can better ensure that supplies are of the appropriate quality and delivered at the right time. For instance, some hospitals have instituted technical educational programs (nursing, physical therapy) to develop their own business professionals (the major element of production in business care) because many workers are in critically short supply.

Because a decision to vertically integrate further commits an organization to a particular product or market, management must believe in the long-term viability of the product/service and ...