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

Corporate strategy of pirelli - Essay Example It is a pioneer in the field of rubber related industries. It has perused expansions in tire and telecom industry both vertically and horizontally. Pirelli generated tremendous employment opportunities ever since its inception. Even in 1872 it employed close to one thousand people, an indication of the economic contributions, since their inception. Pirelli’s growth ensured economic prosperity not only in Italy but also in other parts of the World. Pirelli expanded its business and spread prosperity by increasing the GDP of the nation’s it operates. Developed nations were more than interested to avail 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 through integration b) Expansion through diversification c) Expansion through cooperation. Pirelli’s expansion plans consisted of all the above mentioned options. Integration basically means combining activities on the basis 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 progress in its horizontal integration. Pirelli was a pioneer in diversification of its businesses. In fact, integrating in the lines of the existing business it self is an act of concentric diversification. Apart from that Pirelli started growing geographically at a rapid, yet in a systematic manner. Pirelli’s 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 Pirelli’s clinical approach towards internationalization of their businesses. Initiatives were also made