Type of Integration

  • Created by: Harper T
  • Created on: 18-02-20 06:37
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  • Type of Integration
    • Vertical FORWARD Integration
      • Definition: FORWARD integration with a business in the same industry but a customer of existing business
        • Advantages
          • Business is now able to control the promotion and pricing of its own products
          • Secures a secure outlet for the firm's products- may now exclude competitors products
          • Offer more cost control .
          • Give more control over the business
        • Disadvantage
          • Consumer might suspect uncompetitive activity and react negatively
          • Lack of experience int his sector of the industry
          • Decrease in Flexibility
        • Impact on stakeholder
          • There maybe more varied career opportunities
          • Consumers may resent lack of competition retail outlet because of the withdrawal of competitor products
    • Vertical BACKWARD integration
      • Definition: Backward integration with a business in the same industry but a supplier of existing business
        • Advantages
          • Give control over quality, price And delivery times of supplies
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