BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
True
|
|
False
|
Detailed explanation-1: -If two large movie-theater chains decide to merge, the result is likely a horizontal integration that creates a more favorable industry structure by decreasing competition. Fabulous Jewelry Inc. is considering a takeover of its competitor, Cranberry Dream Jewelry LLC.
Detailed explanation-2: -The advantages include increasing market share, reducing competition, and creating economies of scale. Disadvantages include regulatory scrutiny, less flexibility, and the potential to destroy value rather than create it.
Detailed explanation-3: -Horizontal integration is an integration strategy in which a company acquires one or more companies at the same level of the supply chain within its industry. Companies can achieve horizontal integration through a merger, acquisition of another company, or internal expansion.
Detailed explanation-4: -the horizontal integration activity changes the industry structure from oligopolistic to monopolistically competitive. B. the surviving firms will need to be protected against the increasing bargaining power of the suppliers.