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Concentration Strategies

15 January, 2016 - 09:21

LEARNING OBJECTIVES

  1. Name and understand the three concentration strategies.
  2. Be able to explain horizontal integration and two reasons why it often fails.

For many firms, concentration strategies are very sensible. These strategies involve trying to compete successfully only within a single industry. McDonald’s, Starbucks, and Subway are three firms that have relied heavily on concentration strategies to become dominant players.