Nobody downloaded yet

Advantages and Disadvantages of Vertical and Horizontal Integration - Essay Example

Comments (0) Cite this document
This paper examines the concept of expansion through vertical and horizontal integration. These two concepts are very crucial in that they provide significant business modelling systems and tools that can determine the main structures of the business…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.9% of users find it useful
Advantages and Disadvantages of Vertical and Horizontal Integration
Read TextPreview

Extract of sample
"Advantages and Disadvantages of Vertical and Horizontal Integration"

Download file to see previous pages One of the most important elements of businesses is survival. For a business to thrive through different timelines and periods, there is the need for businesses to find ways and means of remaining profitable (Kotler, 1994). This implies that businesses will need to modify their ways of production and find ways and means of keeping their customers satisfied. Aside customer satisfaction, businesses also need to stay ahead of other players in the industry by remaining competitive.
Survival of a business is strongly linked with its ability to grow. There is a popular saying that one needs to evolve or become extinct. This implies that businesses need to find ways and means of growing and expanding to meet these evolutional needs.
Due to the complex nature of businesses and the complications that can come up when a business is expanding, there are numerous approaches through which a business can expand by way of acquiring other businesses. The use of acquisition and mergers comes with so many business and managerial requirements that must be examined closely at each and every point to ensure that optimum results are attained.
The paper attempts an in-depth application of the concept of mergers and acquisitions to businesses in the technological sector. It examines the advantages and disadvantages of vertical integration and horizontal integration in the technological sector....
Hill & Jones (2010) identify that there are four main reasons why a business might choose to ‘reposition’ itself. In other words, a business might want to change its structures and systems through various means of acquisitions or control of other ventures that are closely related to it. According to Hill & Jones (2010), the first reason why a business might want to reposition itself is for the purposes of improving the company’s competitive position. In other words, the business might want to become much more formidable in maintaining its share in the control of valuable resources like the markets and/or the inputs that are used for production in the industry. Secondly, a business might want to improve its profitability situation. In other words, businesses might want to increase their earning powers and control more income or revenue streams through some expansion or re-positioning exercise. Thirdly, a business might want to enhance production. In other words, a business might want to find efficient and effective ways of producing the same thing. In this wise, they might seek to produce more from a given volume of inputs or increase the volume of production they undertake. Finally, a business might want to diversify so that they reduce risks and enhance returns. This might be done through the controlling of different income generation sources rather than a single or fewer income generation streams. This is done through various techniques like the creation of new business units or new products which can provide value to consumers and in effect provide some more revenue for the company. In this wise, the business will not have to rely excessively on a single income generation unit which ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Advantages and Disadvantages of Vertical and Horizontal Integration Essay”, n.d.)
Retrieved de https://studentshare.org/business/1392084-advantages-and-disadvantages-of-vertical-and-horizontal-integration
(Advantages and Disadvantages of Vertical and Horizontal Integration Essay)
“Advantages and Disadvantages of Vertical and Horizontal Integration Essay”, n.d. https://studentshare.org/business/1392084-advantages-and-disadvantages-of-vertical-and-horizontal-integration.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
SAS case, on vertical integration
This paradigm shift has been fuelled by the evolution of passengers’ taste and preference over time as they tend to prefer airlines that serve a large number of destinations. Foreign restrictions and the existing current bilateral air service agreements has rendered establishment of a global network by a single carrier difficult, thus the need for mergers (Park & Zhang, 1999).
8 Pages(2000 words)Essay
SAS case, on vertical integration
SAS faced numerous challenges in 1980s. The company had to overcome many threats from the aviation environment. The profits of the company declined due to high competition from rival airline companies. The SAS had to come up with new management through Carlzon, where it was demanded that the airline be fully restructured.
8 Pages(2000 words)Essay
Grand Met case, on horizontal integration
So GrandMet simultaneously maintains the assets from varied industries such as tobacco, liquor, etc. This report aims at identifying the strategic direction of GrandMet in future. The present business environment is highly dynamic and competitive. It has intensified more with the advent of globalisation in the world market.
8 Pages(2000 words)Essay
Vertical and Horizontal Integration
Companies that manufacture hardware in previous years are now acquiring the production of software. Companies that only dealt with software are acquiring hardware production facilities in a bid to stay afloat; this occurred in the case of HP and Google.
10 Pages(2500 words)Essay
Vertical Integration Strategy
As for its public relations and efforts to address community concerns, there is likely not a worse example. First, its strengths will be set forth, followed by a discussion of its needs for improvement. In terms of operations, the
3 Pages(750 words)Essay
BPMN advantages, disadvantages within system integration
Business Process Modeling Notation is a representation used to specify business processes in graphical form in the business process model. There are several advantages of using the Business Process Modeling Notation in the business environment and also technically. There are numerous advantages that are associated with it.
6 Pages(1500 words)Essay
Vertical Boundaries Of the firm - Vertical Chain and Vertical Integration
The main focus is on getting maximum possible amount of smoothness in the work and to thereby realize profit targets. In the present study we analyze the production management and vertical chain management challenges of Triond
5 Pages(1250 words)Essay
Vertical and Horizontal Mergers in Apparel Industry
Mergers are important for businesses dealing in the same line of products. It can enable a collapsing company to continue with its operations and profitability. Similarly, it can increase the market shares of two independent companies if they operate as a single firm. Therefore, mergers are recommended for enterprises.
2 Pages(500 words)Essay
Portfolio AT&T Horizontal and Vertical Analysis
During 2012 the net income of AT&T was $11,318 million. It’s net income increased by 5% during 2012. The net margin of a company shows the profitability of the business (Besley & Brigham, 2000). The net margin of a company is calculated dividing net income by total sales.
4 Pages(1000 words)Essay
Pros and Cons of Horizontal and Vertical Analysis
However, when discrepancies arise significantly in percentages, it becomes very difficult to pinpoint the root cause of that change as well as the effect of those changes on other line items of income statement and balance sheet (Brigham et al, 2008).
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Advantages and Disadvantages of Vertical and Horizontal Integration for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us