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CONTENTS
INTRODUCTION CORPORATE LEVEL STRATEGIES HORIZONTAL INTEGRATION VERTICAL INTEGRATION EXAMPLE OF AT & T COMPANY REFERENCES
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Introduction
Corporate- Level Strategy should allow a company, or its business units, to perform the value-creation functions at lower cost or in a way that allows for differentiation and premium price.
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A wealth of data suggests that the majority of mergers and acquisitions Do Not create value and that many any actually DESTROY value.
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Raw materials
Intermediate manufacturer
Assembly
Distribution
End user
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Companies may disintegrate or exit industries adjacent to the industry value chain when encountering disadvantages from the vertical integration.
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AT&T is one of todays largest industry for voice, video and data communication companies in the world. It is the market leader in local, long distance and internet services. It is said to be horizontally integrated because it has a wide range investments in companies, like General electric, Radio Corporation of America, Westinghouse, National Broadcasting Company. All these companies helped AT&T get closer and closer to be a global market dominates. Its ambition of monopolizing the market has appeared as early as around the time when radio was a new medium. Therefore it is quite easy to see that AT&T is horizontally integrated. NANDINI.R
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In addition, AT&T is vertically integrated as well, since it also has ownership over companies that transmit equipments, including stations, cable lines, telephones, etc. which tremendously helped AT&T in providing one stop services and products. Without paying AT&T for its entitled infrastructure, other companies would never be able to use or provide similar service or products which AT&T is said to be a dominating winning mix
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REFERENCES
Vipin Gupta, Kamala Gollakota, Srinivasan. R an Business Policy and Strategic Management. Charles W.L Hill / Gareth R. Jones an Integrated Approach of Strategic Management Theory. John Parnell an Strategic Management Theory and Practice. Jay B. Barney, William S. Hesterly on Strategic Management and Competitive Advantage.
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