Integration

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Integration - occurs when bunisses join together, which can be via a merger, a takeover or a joint venture. 

Types of integration =

1. Vertical Integration - This involves acquiring a business further up in the supply chain – e.g. a vehicle manufacturer buys a car parts distributor 

- Forward vertical integration: this an integration of a business that is closer to final   consumers e.g. a manufacturer buying a retailer

- Backward vertical integration: here the aquisition is operates earlier in the supply chain e.g. a manufacturer buying a raw material or component supplier

- Benefits = Can help companies reduce costs and imporve efficiencies by decreasing transportation expenses and reducing turnaround times. Guarantees access for its products to reach markets. Can determine the way the product is promoted and priced.

- Disadvantages = It can be more effective for a company to rely on the established expertise and economies of scale of other

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