Forward Integration: what this strategy looking for is to control in the distribution part, if is possible to aquire them.For El burrito Sabanero, is not big the impact in terms of distributors, principally because we don't have distributors, but, the strategy of create alliances with different kind of companies, that in the moment of the lunch for their employees take a discount in our product if they decide to buy burritos, create an alliance with companies that allow us give the lunch for their employees, start to increase the brand knowledge, and satisfy, the demand of employees in labor hours.
The implementation of Backward integration we consider that is not necessary in the short term because we have just one distribution point that is the little car, so our demand of raw material is relative low, in the beginning, our suppliers are principally neighborhood shops.
In Horizontal integration the principal objective, is to handle the competence, try to control or aquire as many as possible companies that be considered competence for us. El burrito sabanero is a company that is just starting, moreover we have a limited capital level of $ 10'000.000 COP, it doesn't allow us to control and much less to aquire competence companies
Integration strategies
Intensive strategies
The use of market penetration is evident for us, in that industry is very important to create a good brand image because for the high quantity of competence, so, to increase the marker share, and create loyalty, the implementation of the positioning and brand image is indispensable.
The way we think to increase that market share is to take high attention to the social media, e-marketing, being nowadays the best way to promote and make advertising, we take a part of the capital level to the advertising implementation
The specialization is other big point to increase our participation, we make burritos, and that's all, we think that the perfectioning and development of just one kind of product make easier to create a clear image for our clients.
Of course we need to improve and seek new kind of ingredients, menus, flavors, additions, to create variety and control a big part of gatronomic menus, but focused on burritos, and here is when we apply the product development, to increase sales and accelerate the ROI.
Porter's generic strategies
We consider that the implementation of cost leadership can reduce the persived value of our product, so the impkementation of low cost strategy is not taken into account.
On the other hand, the implementation of differentiation strategy can be useful for us, is a rentable and realistic price, that help us to accomplish our finantial objectives, being a company that offer rare and specialized products in the market, everybody knows what's a burrito, the rarely and specialized concept turn around more on the hand of the diversification in flavors and menus, we want that the market know us in this way, know our service, and that they think in rare burritos as one important and unique differentiation point of the company.
