Compare and contrast vertical and horizontal integration. What are some of the variables make each of these integrations valuable?
Provide an example of a vertical and a horizontal integration that has happened recently.
In what circumstances should an organization consider diversification as a viable strategy?
What benefit does a global strategy provide an organization? Describe a situation when a global strategy would not be a viable solution for an organization.
There are two primary ways that companies can choose to grow their businesses: vertical integration and horizontal integration. Vertical integration occurs when a company expands its operations to include different aspects of the production process, while horizontal integration happens when a company expands by acquiring other companies in the same industry.
Each type of growth has its own advantages and disadvantages, and the best choice for a particular company depends on a number of factors. In general, vertical integration can be more beneficial for companies that produce unique products or that have a strong competitive advantage in their existing markets. Horizontal integration is often more advantageous for companies that operate in highly competitive industries or that are looking to expand into new markets.
One of the key advantages of vertical integration is that it can help a company to control its costs. By expanding its operations to include different stages of production, a company can avoid the need to purchase raw materials or finished products from other companies. This can lead to significant cost savings, which can be passed on to consumers in the form of lower prices.
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