Strategic Management

Horizontal and vertical integration strategies are essential in current dynamic and competitive business environment. Horizontal strategy is critical in reducing the market competition by acquiring or collaborating with the competitors. On the other hand, vertical integration strategy would assist in reducing the cost of production by forming joint ventures with partners in the supply chain (Boone & Kurtz, 2012). To start with, Eastman Kodak extensively invested in horizontal integration strategy due to the intense competition in the cloud service industry. Digital imaging was a huge challenge for the company, and could not compete effectively with other major players in the industry. Therefore, the company engage in numerous acquisitions to make its horizontal integration strategy successful. For instance, the company acquired Fox Photo Inc, and Sterling Drug.

Nevertheless, the company’s vertical integration strategy has been effective in sustaining its competitive advantage. Particularly, the company has been supplying for itself plastics and chemicals that are significant in manufacturing film. This is crucial in lowering the cost of production, and reducing the final price to the consumers. I would recommend diversification corporate level strategy for the company to establish a competitive advantage in the cloud service industry. The traditional photography products of the company have proven to be obsolete in the current business environment. Furthermore, digital imaging has been difficult for the company to penetrate. The company should take advantage of its strong international presence and come with a completely new product. It should create value with novel ideas and products that are not in the market. Related diversification would assist the company to rejuvenate itself, and regain its popularity in the cloud service industry.

Determine five (5) ways in which pursuing a multibusiness model based on diversification may increase profitability for the...