ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A vertical merger is the merger of two or more companies that provide different supply chain functions for a common good or service. Most often, the merger is effected to increase synergies, gain more control of the supply chain process, and ramp up business.

Detailed explanation-2: -A vertical merger is a union between two companies in the same industry but at different stages of the production process. In other words, a vertical merger is the combination and integration of two or more companies that are involved in different stages of the supply chain in the production of goods or services.

Detailed explanation-3: -A vertical merger occurs when two or more firms, operating at different levels within an industry’s supply chain, merge operations.

Detailed explanation-4: -Vertical mergers combine two or more firms involved in different stages of producing the same good or service. A conglomerate is a business combination merging more than three businesses that make unrelated products.

Detailed explanation-5: -A prominent example of a vertical merger is the merger between eBay and PayPal. eBay provides a platform that allows people to sell items, while PayPal allows buyers to pay for these items. This kind of merger can greatly increase efficiency.