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horizontal and vertical integration-- media

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Horizontal integration- It is the same level of value within a company Two or more companies work together in an industry in order to produce a product EXAMPLEs- Volkswagen who Owns Porsche Cadburys and Kraft foods Advantages The company will be able to sell the same worldwide Reduction in cost Disadvantages The costs More work Anti-trust Vertical integration- It is when the process is done with more than 1 step and is controlled in a single company so that companies stock can increase There are 3 types Backward (upstream) When the companies owns some of the product and uses some of the product in its own brand Forward When one company is owned by another company

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Page 1: Horizontal and vertical integration-- media

Horizontal integration-

It is the same level of value within a company

Two or more companies work together in an industry in order to produce a product

EXAMPLEs-

Volkswagen who Owns Porsche

Cadburys and Kraft foods

Advantages

The company will be able to sell the same worldwide

Reduction in cost

Disadvantages

The costs

More work

Anti-trust

Vertical integration-

It is when the process is done with more than 1 step and is controlled in a single company so that companies stock can increase

There are 3 types

Backward (upstream)

When the companies owns some of the product and uses some of the product in its own brand

Forward

When one company is owned by another company

Balanced,

When the company sets up to supply the main

company with all the goods

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi30a-S2rnQAhVBBMAKHYpTALgQjRwIBw&url=https://hbusman.wordpress.com/2013/05/09/methods-of-growth/&psig=AFQjCNE-9oh-XVsuJf7AmFc8-7E4ZMv_wQ&ust=1479812699467254
https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi30a-S2rnQAhVBBMAKHYpTALgQjRwIBw&url=https://hbusman.wordpress.com/2013/05/09/methods-of-growth/&psig=AFQjCNE-9oh-XVsuJf7AmFc8-7E4ZMv_wQ&ust=1479812699467254
Page 2: Horizontal and vertical integration-- media

Advantages

Less cost on transport

More chances to have different increased inputs


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