Professional Documents
Culture Documents
Objectives:
Growing importance of horizontal strategy Interrelationships among business units Tangible, intangible & competitor interrelationships.
Horizontal strategy:
Horizontal strategy is a concept of group, sector & corporate strategy based on competitive advantage Wider term as compared to financial strategies 2 main types:
Existing business units Diversification strategy to enter into new business.
Costs of sharing:
Costs of coordination: e.g.: scheduling, setting priorities Cost of compromise: e.g.: consistent performance for optimum utilization Cost of inflexibility:
Potential difficulty Exit barriers
Difficulty of matching:
Duplication of interrelationships Adopting & other means of matching: realize & search for other ways of improving position.
Intangible interrelationships:
Same generic strategy Same type of buyer Similar configuration of value chain Similar important value activities.
Competitors interrelationships:
Functional differences Potential multipoint competitor Single point competitors with different patterns of interrelationships