Question

if a large medical firm is decided to invest its business in vertically integrating. what options...

if a large medical firm is decided to invest its business in vertically integrating. what options will be available for them for ( backwards and forward integration)

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Answer #1

vertical integrating means coordinating the different stages of an industry when bilateral trading is not beneficial, its a risky strategy and complex to understand, expensive, and hard to reverse yet some compinies jump into them without adquate risk analysis.

if a large medical firm has decided to invest its business in vertical integrating, he should forward integrate. As, manufacturers can reduce steps in the distribution of product and sell higher up in the distribution process with the entry barrier in the market. Successful implementation may provide a company with a competitive advantage over its competitorsand a company could benefit from price discrimination.

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