Price water house coopers is a professional services provider, which is a multinational company networked with firms in more than 158 nations. The services provided by the company include capital markets, audit and assurance, financial counseling, financial solutions, improved decision making, and many more services to private and public clients (pwc, 2019).
Diversification strategy
There are various types of corporate level strategy like merge or acquire, integration, diversification, and retrenchment. Among these, the most appropriate corporate level strategy for the company is diversification strategy, while focusing on the product scope that is the horizontal diversification. The company unique selling proposition is a large number of professional services, and advisory services to the clients. The company has an abundant network in various nations and with firms, moreover, the level of knowledge of the management is very high. The opportunity that the company can gain for the growth of the company is diversifying the company in the product range, the company can offer their own product, like financial products to the clients.
This would be helpful for the company to expand the business from service oriented to product orientation as well. This is related diversification, as the product development for the company would be similar to existing industry. Through this, the company can target existing clients, which are large in number for the company’s original products. The company can target the customer while providing financial products with tax saving advantages (Oh, 2015).
Advantages of the strategy
- Growth opportunities and profit maximization – this strategy would lead to an opportunity for the company to gain the growth opportunity in the market and would lead to increase the profits of the company
- Optimum utilization of existing capabilities and resources – the company already had the capabilities related to financial products, and to utilize the skills and resources to its maximum, the company can use them for product development as well.
- Increase in market share – the product development through the diversification strategy would also lead to an increase in market share of the company in the industry. This increase in market share would be global, as the company can compete in the international market with these new products.
- Competitive advantage – the diversification would lead to innovation in the product and services, as new product development would be involved, which would lead to competitive advantage (Teh & Beverelli, 2015)
Integration of corporate strategy with existing global strategy
PWC is already working with more than 158 nations, which could be beneficial for the company to diversify. To integrate the diversification corporate level strategy to the existing global strategy if the company, the international diversification can be conducted. The new product that the company will develop under this strategy would be offered to customers globally. After the diversification is implemented at the national level, the international market is considered for multinational diversification, which would be similar to the existing flow of services to the customers. This would lead to a bigger opportunity for the company, and utilize their international resources and international networking. Moreover, valuable resources can be distributed from one nation to another, in case of a saturated market in the future (Baker & Bowen, 2015)
References
Baker, H. & Bowen, H., 2015. Globalization and diversification strategy: A managerial perspective. Scandinavian Journal of Management, 31(1), pp. 25-39.
Oh, C., 2015. Regional and product diversification and the performance of retail multinationals. Journal of International Management, 21(3), pp. 220-234.
pwc, 2019. services. [Online]
Available at: https://www.pwc.co.uk/services.html
Teh, R. & Beverelli, C., 2015. Export diversification effects of the wto trade facilitation agreement. World Development, Volume 76, p. 293.
