What was the logical next step and how best to implement it? What were Transsion's competitive advantages and potential weaknesses? How could it be taken to the next level?

Below is a reference reading:

Diversification strategies involve expanding a firm's existing business lines within a market. Expansion can take place through various means, such as mergers and acquisitions (M&As), joint ventures, and greenfield investments. While diversification often extends to unrelated product markets, companies rarely attempt unrelated diversification in foreign markets.

Vertical integration, on the other hand, entails broadening a company's presence within a market by extending its value chain. This can be achieved by moving upstream, involving entering the businesses of suppliers (backward vertical integration), or moving downstream, involving entering the businesses of customers (forward vertical integration). Examples include Tyson and Coke.

Geographic expansion means extending a company's presence within a market after initial entry and success. This approach can help safeguard intellectual property, maintain operational control, transfer organizational routines and corporate culture to foreign subsidiaries, facilitate learning in the host country, and mitigate the urgency of market entry. However, it also comes with disadvantages, including high resource commitment, bearing full financial and operational risk, potential delays in realizing benefits, and the risk of retaliation from established competitors.

Acquisitions typically constitute over 95% of cross-border M&As, where one company (the acquirer) acquires the assets and operations of another company (the target), making the target a subsidiary of the acquirer. A merger, in contrast, involves consolidating assets, operations, and management to create a new legal entity. M&As can present challenges, such as significant resource investment, financial risks, intellectual property protection, potential overpayment due to bidding wars, and complex integration of merged companies. Strategies to improve M&A performance include thorough due diligence, assessment of strategic and organizational fit, retaining key employees and customers, addressing stakeholder concerns, well-structured post-merger integration, and effective communication.

A strategic alliance is a collaborative partnership between two or more independent companies with a shared goal. These alliances can be formed with various entities, including suppliers, customers, universities, competitors, and government agencies, aiming to enter new markets, acquire resources, strengthen skills, share costs and risks, or develop technology. Drawbacks of alliances include potential lack of control, the risk of losing intellectual property or core competencies, and the need to share profits. Success in alliances depends on trust and collaboration between partners, focusing on how to work together effectively, developing metrics to measure progress, leveraging differences, encouraging collaborative behavior, and managing internal stakeholders.