Developing/Proposing strategies for local and international firms. 4.1 Give a hypothetical example of forward integration, backward integration, and horizontal integration for Volkswagen. 4.2 Give a...

Analysis
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Solution
1. Using Volkswagen as an example, provide a hypothetical scenario demonstrating forward integration, backward integration, and horizontal integration. Forward integration refers to the process of purchasing or building a distributor for a product; for example, Volkswagen establishing its own dealers in order to sell automobiles directly to customers is an example of forward integration. Backward integration is the process of owning a supply source for production. An example of this would be Volkswagen purchasing its suppliers and incorporating them into the corporation. The term "horizontal integration" refers to the process of acquiring businesses that perform similar functions; for example, Volkswagen has either acquired its rivals or merged with them (Diestre & Santalo, 2013).
2. Using Toyota Motors as an example, provide a hypothetical scenario demonstrating market penetration, market development, and product development.
Penetration of a New Market Toyota's primary strategy for quick expansion is to strengthen its position in current markets. This comprehensive strategy contributes to the company's growth by gaining new clients in its existing areas. Toyota ensures that it has products for all market categories in order to meet its ambitious expansion goals. For instance, the corporation offers a vast array of automobiles, including luxury cars, work trucks, SUVs, sedans, and compact cars (sedans). The cost leadership component of Toyota's generic strategy is strengthened by this aggressive growth approach. It strengthens the generic strategy's cost leadership by assisting the company in maximising sales volume, which ensures profits despite relatively low selling prices.
Product Improvement Product development is Toyota's core strategy for sustained growth. This audacious effort is aimed to attract new...