Explore BrainMass

Strategy to earn higher profits

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Argyle is a large, vertically integrated firm that manufactures sweaters from a rare type of wool produced on its sheep farms. Argyle has adopted a strategy of selling wool to companies that compete against it in the market for sweaters. Explain why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.

© BrainMass Inc. brainmass.com September 19, 2018, 2:58 am ad1c9bdddf - https://brainmass.com/economics/integration/strategy-to-earn-higher-profits-181606

Solution Preview

The response address the queries posted in 421 words with references.

//As per the directions, we will write about the strategy to be adopted by Argyle for earning higher profits. We will also write about the other strategies that Argyle might use to earn more profits. It will assist in understanding the 'Business Strategy' of the Company for attaining higher profits.//

Argyle Strategy to Earn Higher Profits

Vertical integration is the process by which any organization undertakes a new activity with the purpose of either supplying inputs such as raw materials or serving as the customer for outputs such as marketing of the firm's product (Azhar, 2002).

Vertical integration is segregated as Backward and forward integration. Backward integration means ...

Solution Summary

The response address the queries posted in 421 words with references.