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
- Advantages
- Definition: FORWARD integration with a business in the same industry but a customer of existing business
- 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
- Untitled
- Advantages
- Definition: Backward integration with a business in the same industry but a supplier of existing business
- Vertical FORWARD Integration
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