BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Vertical integration requires a company’s direct ownership of suppliers, distributors, or retail locations to obtain greater control of its supply chain. The advantages can include greater efficiencies, reduced costs, and more control along the manufacturing or distribution process.

Detailed explanation-2: -For instance, a fast food retail chain acquires a bun or a cup factory to reduce dependencies and cut costs. This acts as a major example of vertical integration strategy.

Detailed explanation-3: -Horizontal integration is the strategy of acquiring other companies that reside along a similar area of the supply chain. For example, a manufacturer may acquiring a competing manufacturing firm to better enhance its process, labor force, and equipment.

Detailed explanation-4: -Horizontal integration is when a business grows by acquiring a similar company in their industry at the same point of the supply chain. Vertical integration is when a business expands by acquiring another company that operates before or after them in the supply chain.

Detailed explanation-5: -When an Organisation owns it’s suppliers it is called upstream vertical integration.