Vertical integration is essential for an organization because, depending on its industry of operations, Vertical integration may be the only way by which an organization can compete effectively as well as operate in a more efficient and productive manner by minimizing costs within the supply chain. Simply, Vertical integration is part of main company’s strategy for diversifying its operations by expanding within its supply chain of operations.
Strategic planning is the tool which clearly identify goals and objectives of an organization as well as it also assess the internal and external situation required to formulate and implement the strategy. An effective plan is always required to accomplish anything. If you are coaching a football team, doing preparation for exam, or running a business, you need a strategic plan. Today business world become much competitive and the olden days of budget oriented planning or forecast based planning gone away.
A value chain refers to the whole series of activities that create and build value at every step for a particular company. The concept of value chain analysis is developed by Michael Porter in 1980 in his very famous book 'Competitive Advantage'. Value chain analysis used to analyze those specific activities which can create competitive advantages for a company.
Porter's Generic Strategies are also called Porter marketing techniques. These strategic tactics used by different companies in order to penetrate a market and after penetration then sustain a strong advantage over the competitions. It can also be elaborate as “the primary aim of a company is to attract the industry in which it operates and secondary purpose of the company is to position itself with in that industry.
PEST Analysis is abbreviation of “Political, Economic, Social, & Technological analysis" and it allows companies to make a framework of macro-environmental factors for the purpose of designing effective environmental strategies. The environment of corporate world is ever changing. No business operates in a vacuum environment. The corporate environment is something real complex and dynamic.
The abbreviative business term SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Conducting a SWOT analysis enable a company to see where your company is in the marketplace and what strategies a particular company can develop to increase its market share. The top level management and marketer of the company must know SWOT analysis and its importance for the company.