9. Strategic methods

Cards (6)

  • Retrenchment - Tesco
    Exited chain of 'Fresh and Easy' shops in US as misjudged American market
  • Overtrading - Wilko
    Expanded store chains without efficiently managing cash flow
  • Experience Curve - Amazon
    Can use exp from operating in lots of diff industries (e-commerce, supermarket, cloud computing) to make strategic long-term strategy
  • Synergy
    Sainsbury bought Argos - revenue synergy
  • Overtrading - WeWork
    Expanded globally too quickly - recklessly spent money on areas not central to business + not enough cash to fire employees due to redundancy pay. Lost 3/4 value in one year
  • Overtrading - Forever 21
    Opened too many new stores - expansion decreased product quality - more mass-produced so lost touch with core customers + faced competition from Zara + H&M e-commerce