Identify The Business Growth Strategies In Amazon, Starbucks (Essay Sample)

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Business Growth Strategies
For business organizations to succeed, the managers need to implement a good strategy. A good strategy in the hospitality industry would help to strengthen the market position of a company (Simonetti 1). The appropriateness of the strategy that is adopted by an organization depends on the financial strength of a company and the competition in the industry. This paper identifies strategies adopted in particular businesses and the associated benefits.
Forward Integration in Amazon
Forward integration strategy expands the business operations by taking control of the direct distribution or supply of the organization’s products. In this case, the company moves down the supply chain and controlling the delivery of products to the consumers (Simonetti 1). Forward integration enables the company to play a bigger role in the supply chain of the products. This makes the company own more significant share of the industry. Amazon, an online bookselling company, implemented changes and started to offer rapid product delivery in areas in the country (Worstall 1). This is enabled by the developments realized in the digital marketing platform. This move makes the company play a bigger role in the supply chain of its products. This has ensured the growth of the income generated by reducing supply chain and increasing the market share of the company. Amazon has been able to respond to the customer’s demands more efficiently.
Backward Integration in Starbucks
This refers to a business strategy where a company directly purchases or mergers with the raw materials suppliers (Simonetti 1). This aim improves the efficiency of the raw material supply chain. The production process in a company starts with the acquisition of raw materials. With backward integration, a company moves backward in its supply chain. Starbucks is a chain of coffee shops in the United States. In its operations, the company purchases coffee beans from other coffee producers. The company bought a coffee farm in China (Simonetti 1). This move was intended to cut the cost of buying coffee. This ensured that the firm had an unlimited supply of the raw materials. Also, the competition for quality coffee beans had resulted in increasing the prices. With production of its coffee beans, Starbucks ensured quality supply at low cost. The strategy has broadened the company's control of the supplies.
Market Penetration in Under Armour
Different forms of product promotions can be adopted by a business. One of the marketing methods adopted by companies is the sponsorship deals. I this case, the company pay prominent people especially athletes to utilize their products. This enhances marketing of the products. According to Guardian Sports, Under Armour, a sportswear company based in the United States, signed a four-year kit deal with Andy Murry, a tennis champio...