The specific corporate strategy that a company chooses will depend on its unique goals and circumstances. Here are some examples of corporate strategy that world’s leading companies have implemented:
Amazon.com – Expanding into new tech markets
Amazon’s corporate strategy is to expand into new markets such as cloud computing and streaming video. Amazon uses a disruptive innovation strategy to develop new products, a platform strategy to sell its own products and services and the products and services of other businesses, and an acqui-hire strategy to acquire talent.
Asea Brown Boveri (ABB) – Replacing head office with product-focused profit centers
ABB’s corporate strategy is to create product divisions independent of head office so that they could operate flexibly within the markets they traded in. The functionally oriented groups at head office were replaced by a cross-functional team of top executives in key product areas such as power systems and robotics. Decentralization broke down the group into distinctive profit centers and give individual accountability to each.
Coca-Cola – Inventing new organizational structure in new markets
Coca-Cola’s corporate strategy is to create a division that takes responsibility for key decisions and overall performance in new geographical markets. The company decentralized its organizational structure by cutting half of its Atlanta headquarters and moving regional managers closer to the countries they were responsible for. The company also focuses on defending its market share in the carbonated beverage industry.
Unilever – Reducing environmental impact
Unilever’s corporate strategy is to reduce the company’s environmental impact and to operate in a more sustainable manner. The company aims to reduce energy consumption, use recycled materials, and source products from sustainable suppliers.
Tata – Cutting managerial costs and ensuring flexibility
Tata’s corporate strategy is to delayer the organizational structures of all its business units to reduce the average number of management layers from ten to six. These layers will have clearly defined job descriptions to equate jobs of a similar nature across the Tata group of companies to ensure flexibility. The company will allow its managers to work in different departments within each business division and in different group companies.
Walmart – Offering competitive prices for customers
Walmart’s corporate strategy is to offer low prices on a wide variety of products to be a cost focus leader in the retail industry, making it a one-stop shop for consumers. The company also focuses on efficiency in its operations, which allows it to keep costs down. Walmart aims to be the low-cost producer in an industry. This can be achieved through economies of scale and low-cost inputs.
Apple – Creating innovative products leading to strong brand and loyalty
Apple’s corporate strategy is to develop innovative products and services that are highly desirable to consumers to become a differentiation leader in the consumer electronics industry. This strategy aims to develop products or services that are unique and desirable to consumers creating a strong brand identity and building a loyal customer base.
Tesla – Transitioning to sustainable energy
Tesla’s corporate strategy is to accelerate the world’s transition to sustainable energy. The company focuses on developing electric vehicles and solar energy products. In fact, Tesla uses a cost focus strategy to produce electric vehicles at a competitive price, a differentiation strategy to develop innovative products, and a sustainability strategy to reduce its environmental impact.
Alphabet – Investing in innovative tech businesses
Alphabet’s corporate strategy is to invest in a variety of innovative businesses, including search, cloud computing, and life sciences. The company aims to create a portfolio of businesses that will drive growth and long-term success.
Kodak – Reviving an ailing business
Kodak’s corporate strategy is to focus on divesting its traditional film business and expanding into digital imaging. This may involve cutting costs, divesting non-core assets, or focusing on new markets.
Netflix – Changing the company’s direction into modernity
Netflix’s corporate strategy is to pivot from renting DVDs by mail to streaming video over the Internet. This strategy involves focusing on new markets or products.
GoPro – Becoming a niche leader
GoPro’s corporate strategy is to focus on a specific niche market which is the action camera product category. This allows the company to become an expert in that area and to develop a strong customer base.
McDonald’s – Internationalizing operations
McDonald’s corporate strategy is to expand the company’s operations into new international markets. This can be done through exports, acquisitions, or Joint Ventures (JV). McDonald’s has internationalized its operations to over 100 countries mainly through franchising.
Companies can use a combination of these strategies to achieve their desired goals. It is important to note that there is no one-size-fits-all corporate strategy. The best strategy for a company will depend on its unique goals and circumstances.
