Corporate strategy of pirelli Essay Example | Topics and Well Written Essays - 750 words

Corporate strategy of pirelli - Essay ExampleIt is a pioneer in the field of rubber related industries. It has perused expansions in fatigue and telecom industry both vertically and horizontally. Pirelli generated tremendous employment opportunities ever since its inception. Even in 1872 it use close to one thousand people, an indication of the economic contributions, since their inception. Pirellis growth ensured economic prosperity not only in Italy but also in other parts of the World. Pirelli expanded its business and give out prosperity by increasing the GDP of the nations it operates. Developed nations were more than interested to service the services of Pirelli as it would bring economic prosperity to their nations.When an organization wants to expand, it can pursue growth strategies. some of the growth strategies are a) Expansion by means of integration b) Expansion through diversification c) Expansion through cooperation. Pirellis expansion plans consisted of all the above mentioned options.Integration basically means combining activities on the foundation of the value chain related to the present activity of the company. From rubber sheets, belts, slabs, and vulcanized products initially to making of two wheeler and four wheeler tires is an example of their vertical forward integration. Pirelli was also seen making rapid mount up in its horizontal integration.Pirelli was a pioneer in diversification of its businesses. In fact, integrating in the lines of the breathing business it self is an act of concentric diversification. Apart from that Pirelli started growing geographically at a rapid, until now in a systematic manner. Pirellis internationalization started from the beginning of 1900 onwards. Its expansion to Barcelona in Spain was followed by a similar venture in Britain in 1914, and by 1920 factories had also been set up in Brazil, Greece, Argentina, Turkey, and German is a fact of Pirellis clinical approach towards internationalizati on of their businesses. Initiatives were also made