Short Answers for Presentation. Corporate Strategy Management Essay

Corporate Strategy
Student’s Name
Institution
Corporate Strategy
Question 1
AT&T operates primarily in the telecommunications industry. Knecht (2014) describes three types of diversification: horizontal, vertical, and conglomerate. Horizontal diversification refers to expansion on the same value chain level. An example is AT&T adding products and acquiring a business that appeals to its current customers. Vertical diversification involves a company branching out onto a different level of the value chain. For example, AT&T may decide to add new products and services that complement its wireless phone business. Conglomerate diversification, according to Knecht (2014), refers to a company’s growth out of its existing industry into a different sector that may be unrelated to its current customer and value chain segments. As pointed by the author, the new product may have little or no synergies with a company’s product line and maybe targeted towards new customer segments as well as new competitors. This describes the current corporate strategy of AT&T. The company i...