Horizontal and Vertical integration
Horizontal integration Horizontal integration is where a production company expands into other areas of one industry. This means that the company can develop in a particular area of production or they can buy out another company of that deals with these areas. Advantages/benefits: The benefits of horizontal integration is that it reaches a wider audiences. Secondly it has lower costs, increased differentiation and increased market power and reduced competition.it also helps remove cost abundancy, it less expensive to offer the same product from different areas than it might be to present a totally new product Disadvantages/drawbacks: The one disadvantage of horizontal integration is that one company could merge with another and it may increase the values of companies secondly larger companies are more difficult to handle and they are less adaptable into bringing new developments with businesses. Vertical integration Vertical integration is when the production has owne