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Corporate Business: Horizontal integration

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“ANALYSIS OF CURRENT STRATEGY” Corporate level of strategy: A corporate strategy should enable a company, or one or more of its business units, to perform one or more of the value creation functions at a lower cost or in a way that allows for differentiation and a premium price. .(Hill&jones 2013,p.334). Consequently, as the level of corporate strategy tom tome used integration method which has the most prominent integration was Horizontal integration and horizontal alliance. Furthermore as the level of corporate strategy the related diversification also implemented. Analysing the current strategy of tom -tom, it has made various mergers and acquisition as well as partnership that have positioned the economy well. Horizontal integration is the process of acquiring or merging with industry competitors to achieve the competitive advantage that arise from a large size and scope of operations. (Hill and jones2013, p. 311) Following the year s 2006-2008, Tom tom made strong it by making three key strategic acquisitions. Data factory AG was acquired to power Tom Tom work through Web fleet technology, while applied Generics gave its technology from mobility solution. However the most prominent of these three was the acquisition of Tele Atlas. Those types of acquisition made the company horizontal integration. By having these patents, the company has protected itself against its competition and other companies trying to enter into the market. Strategic alliances are Long-term agreements between two or more companies to jointly develop new products or process that benefit all companies concerned. (Hill and jones2013, p.324) Similarly, in the case of tom tom also built a partnership with advanced integrated Solution, adding an itine... ... middle of paper ... ...n the operating margin in the year 2006. The quarterly sale by the company has shown a rise in the revenue by 368 million pounds in the first quarter of the year 2009. In the second quarter of the year 2009, the revenue turned out to be 453 million pounds. The business led to a leap by diversifying into a huge market. It tends to create a more responsible target for the company that has led the company into expansion and more amount of turn over profits. The company emphasized on phone based navigation as well. This is circulated in the series of smart phones for creating its wide use and increasing the popularity of this application. References: Charles W.l.Hill &Gareth R .Jones 2013 An integrated Approach: Strategic management 10 th edition. Tom Tom for Business and Government, Craig M. (2009),
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