Merger between two firms at the same stage of the production process. To achieve economies of scale, or to increase market share
Horizontal integration
1 of 5
Merger between two firms at different stages of the production process, within an industry. TO increase barriers to entry, increase control over suppliers, or to ensure a smooth production process.
Vertical integration
2 of 5
Closer to the consumer
Forward vertical integration
3 of 5
Further from the consumer
Backward vertical integration
4 of 5
Merger between firms in entirely unrelated industries, to spread risk, widening the range of output. Also allows firms to use funds to cross-subsidise investment in new areas.
Conglomerate integration
5 of 5
Other cards in this set
Card 2
Front
Merger between two firms at different stages of the production process, within an industry. TO increase barriers to entry, increase control over suppliers, or to ensure a smooth production process.
Back
Vertical integration
Card 3
Front
Closer to the consumer
Back
Card 4
Front
Further from the consumer
Back
Card 5
Front
Merger between firms in entirely unrelated industries, to spread risk, widening the range of output. Also allows firms to use funds to cross-subsidise investment in new areas.
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