MANAGEMENT: Managerial economics - Desklib

Running head: MANAGEMENT
Managerial economics
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1
MANAGEMENT
Module 4-
Case
 Related diversification of Apple relates to the expansion of the scope and arena of the
business for increasing the customer base. In case of Apple, mention can be made of
the Watches, which is a latest attraction among the customers. Strategic aspect in this
direction is reflected from the adoption of social media marketing for disseminating
the information about the special schemes, discounts and offers (Oladimeji & Udosen,
2019). On the other hand, unrelated diversification examples for Apple are computer
software products like iOS applications, which has helped the customers to obtain
innovative products and services. This innovation expands the scope and arena of the
corporate social responsibility of the brand, acting as an agent in terms of gaining
higher satisfaction from the customers.
 Related diversification in case of Samsung extends to the products like solar cells,
rechargeable batteries, and biopharmaceuticals among others. In case of the unrelated
diversification, mention can be made of the services like textiles, insurance and
securities.
 Backward Vertical integration for Apple manufacturing of the electronic devices,
hardware components. Investments in the research and development has proved to be
beneficial in terms of attaining technological development for altering the business
outlook (LI & GUO, 2017). On the other hand, forward vertical integration, in case of
Apple, are the schemes like Best Buy in the retail stores, where the customers can get
the exclusive products.
 For Samsung, the backward vertical integration strategy revolves around achieving
higher flexibility in terms of the cost price of the smart phones. Using competency
model is assistance for achieving better results. In case of the forward integration, the