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Advantages and Disadvantages of Vertical and Horizontal Integration

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Define and distinguish between vertical and horizontal integration. Discuss the advantages and disadvantages of both.

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Horizontal & Vertical Integration

Horizontal integration depicts the integrations of different firms at their identical stage of production in the identical or different industries. Vertical integration explicates the integration of companies at diverse stages of production or distribution in the similar industry. Vertical integration can be done in two types: backward and forward integration. Horizontal integration is used by companies to organize competitors at the same level of production. Vertical integration renders companies with a facility to attain merger with input suppliers as well as integration with the firms in the output ...

Solution Summary

This solution of 367 words defines both vertical and horizontal integration and compares the advantages and disadvantages of each. References used are included.