Thursday, 12 January 2017

Horizontal and verticle integration


Horizontal integration


is the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.


Vertical integration

consists of companies that acquire a company that operates either before or after the acquiring company in the production process.


No comments:

Post a Comment