Topic > Corporate Business: Horizontal Integration - 922

“ANALYSIS OF CURRENT STRATEGY”Corporate Level of Strategy: A corporate strategy should enable a company, or one or more of its business units, to perform one or more creation functions of value at a lower cost or in a way that allows for differentiation and a premium price. .(Hill&jones 2013,p.334). Consequently, as the level of business strategy used by Tom Tom used the integration method which has the most important integration was horizontal integration and horizontal alliance. Furthermore, at the level of the corporate strategy, the relevant diversification has also been implemented. Analyzing Tom's Current Strategy - Tom has made various mergers and acquisitions as well as partnerships that have positioned the economy well. Horizontal integration is the process of acquiring or merging with industry competitors to gain the competitive advantage that comes from large size and scope of operations. (Hill and Jones, 2013, p. 311) After the year 2006-2008, Tom Tom strengthened its business by making three key strategic acquisitions. Data Factory AG was acquired to power Tom Tom's work via Web Fleet technology, while Applied Generics provided its technology from the mobility solution. However, the most important of these three was the acquisition of Tele Atlas. These types of acquisitions made the company horizontally integrated. By having these patents, the company has protected itself from competition and other companies trying to enter the market. Strategic alliances are long-term agreements between two or more companies to jointly develop new products or processes that benefit all interested companies. (Hill and jones2013, p.324) Similarly, in Tom's case Tom also built a partnership with an advanced integrated solution, adding an itine...... middle of the document ......n the margin operational in the year 2006. The quarterly sales by the company showed an increase in turnover of 368 million pounds in the first quarter of the year 2009. In the second quarter of the year 2009, the turnover was 453 million pounds. The business has made the leap in quality by diversifying into a huge market. It tends to create a more responsible goal for the company which has led the company to expansion and a greater amount of turnover profits. The company also emphasized phone-based navigation. This is spread across the smartphone series to create wide usage and increase the popularity of this application. References: Charles WlHill & Gareth R. Jones 2013 An Integrated Approach: Strategic Management 10th Edition. Tom Tom for Business and Government, Craig M. (2009),