horizontal and vertical integration-- media
TRANSCRIPT
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
Advantages
Less cost on transport
More chances to have different increased inputs