Pertamina is an Indonesian Oil & Gas corporation that wishes to enter India & is competing against Reliance Industries Limited. a. As a consultant you are required to recommend whether backward integration or forward integration is a superior strategy to compete against RIL in India? Which one of the alternatives would you choose to your client & why? Justify with reasons.
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Forward integration is a superior strategy to compete against RIL in India
Explanation:
- Pertamina is an Indonesian Oil & Gas corporation which can enter India and compete competitors through Forward Integration. It can allow manufacturers to gain better access to end users and improve market visibility.
- Forward integration is a superior strategy to compete against RIL in India because Vertical integration raises a firm's capital investment in the industry.
- Forward integration can enhance the competitiveness through strategically good activities in methods that lowers cost, build expertise and increase differentiation.
- Forward integration often calls for developing different types of resources and capabilities.
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Which one of the alternatives would you choose to your client & why? Justify with reasons.
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