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    Turnaround Strategy

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    Arjun Sreekumar
    Turnaround strategies are developed when a company's existing strategy is failing and leading to losses. The new turnaround strategy aims to return the business to profitability. Dell successfully used a turnaround strategy in 2007 by withdrawing its strategy of direct laptop and computer sales and returning to selling through retailers. Nokia's attempt to use Windows phones as a turnaround strategy failed because Android was more user-friendly and Nokia lost market share to competitors. Disney restructured its media business to separate content creation from distribution in order to focus separately on each and better meet customer demands.

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    Turnaround Strategy

    Uploaded by

    Arjun Sreekumar
    36 views2 pages
    Turnaround strategies are developed when a company's existing strategy is failing and leading to losses. The new turnaround strategy aims to return the business to profitability. Dell successfully used a turnaround strategy in 2007 by withdrawing its strategy of direct laptop and computer sales and returning to selling through retailers. Nokia's attempt to use Windows phones as a turnaround strategy failed because Android was more user-friendly and Nokia lost market share to competitors. Disney restructured its media business to separate content creation from distribution in order to focus separately on each and better meet customer demands.

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    Turnaround strategies are developed when a company's existing strategy is failing and leading to losses. The new turnaround strategy aims to return the business to profitability. Dell successfully used a turnaround strategy in 2007 by withdrawing its strategy of direct laptop and computer sales and returning to selling through retailers. Nokia's attempt to use Windows phones as a turnaround strategy failed because Android was more user-friendly and Nokia lost market share to competitors. Disney restructured its media business to separate content creation from distribution in order to focus separately on each and better meet customer demands.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    36 views2 pages

    Turnaround Strategy

    Uploaded by

    Arjun Sreekumar
    Turnaround strategies are developed when a company's existing strategy is failing and leading to losses. The new turnaround strategy aims to return the business to profitability. Dell successfully used a turnaround strategy in 2007 by withdrawing its strategy of direct laptop and computer sales and returning to selling through retailers. Nokia's attempt to use Windows phones as a turnaround strategy failed because Android was more user-friendly and Nokia lost market share to competitors. Disney restructured its media business to separate content creation from distribution in order to focus separately on each and better meet customer demands.

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    © All Rights Reserved
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    of 2

    Turnaround Strategy

    It is a strategy developed when a company feels that the decision or strategy taken by them earlier is
    wrong and may be leading to loss, then the new strategy formed to take the business back to track
    of profitability is known as turnaround strategy.

    Example of Success

    Dell which is one of the top computer manufacturer and retailer in the world had used a successful
    turnaround strategy for reaching to this position. In Early 2006 for reducing the cost they took a
    strategy to sell their laptops and computers directly. But this strategy then suffered losses. i.e the
    strategy was a failure at that time and Dell was loosing sales. So in the next year 2007, dell withdraw
    this strategy and initiated the strategy to sell their products via retailers. This resulted in success of
    the company.

    Example of Failure

    Nokia was leading Indian market before the android generation started. When other competing
    companies started launching their android devices Nokia was losing their market shares. i.e Nokia’s
    existing strategy was failing. Nokia took a strategy to use windows OS powered phones to compete
    in the market. This was the turnaround strategy for Nokia. But what happened was Nokia was not
    able to compete with Android as compared to windows OS Android was more used friendly. So
    eventually Nokia got beaten by the competition and went out of business.

    Restructuring

    Disney Restructured its media and entertainment business for accelerating their growth as
    customers are now more attracted towards digital entertainment. As part of this strategy Disney
    separated their development and production of programs from the distribution so that separate
    focus can be given to both and can be more responsive to customer demands. As per the new
    structure Disney’s studios, entertainment and sports business will come under one division and
    distribution and commercialization comes under different division. The former will be in charge for
    the content creation and the later will be in charge of how and where the customers can access it.

    Example of Franchising

     McDonalds
     Dominos
    Example of Wholly Owned Subsidiary

     Volkswagen AG - wholly owns Volkswagen Group of America Inc.


     Reliance Industrial Investments and Holdings Limited (RIIHL), is a wholly owned subsidiary of
    the Reliance Group of Company.

    Example of Licensing

     In 2018 Nestle and Starbucks entered into a coffee licensing deal. Nestle agreed to pay $7.15
    billion to Starbucks for the exclusive rights to sell Starbucks products around the world
    through Nestle’s distribution network.
     McDonalds entered into licensing agreement with Disney for using the trademark character
    of Disney to cobrand their happy meals.

    Example of Turnkey

     Airport Construction projects


     Dedicated Freight Corridor Project

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