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Why expand:

Increase sales ­ leads to increase in profits.
Increase Market Share ­ retailers will be much more prepared to stock the
products on the business.
Take advantage of Economies of Scale ­ Reduces the cost of producing a

Why Not Expand:

To keep control.
To offer a…

Page 2

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Benefits: Can lead to a substantial increase in market share, reduces competition,
Economies of scale are likely.

Vertical Integration:

Forward - Joining two businesses in the same industry, different stage of
production, towards the customer. It offers reliable outlet for products.
Backward ­ joining two business in same industry and…



Very Useful


Very Useful

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