Question

what is vertical integration? give examples of backward and forward integration?

Answer #1

Vertical integration is a strategy where a firm acquires/combines business operations with in the same product vertical(supply chain) . It can help companies control costs by reducing transportation expenses, increasing operation efficency.

Vertical integration is further divided into

1. Forward integration

2. Backward integration.

1. Forward integration - it involves company expansion its control over the direct distribution or supply of company's product. Classic example is opening controlling the dispatch of materials till it reaches the final retailer. I.e. When an fmcg company choose to control the distribution cycle till it reaches the retailer/distributor

2.Back ward integration - it involves the company purchase or merger upward the supplier side. i.e for example when.a bakery dicides to integrate the raw materials seller let us say wheat flour to its own facility as a member or partner. It enables the bakery in improving the raw material capabilities

I hope i cleared your doubts. Do help me with a like, if you are satisfied with the answer

Some firms have engaged in backward vertical integration
strategies in order to appropriate the economic profits that would
have been earned by suppliers selling to them. How is this
motivation for backward vertical integration related to the
opportunism logic for vertical integration? Compare the competitive
conditions under which firms will be motivated to avoid opportunism
through vertical integration. Please give examples and elaborate on
your answers.
*Not the Course Hero Answer, please*

Explain the roles of vertical integration and outsourcing in the
make-or-buy decision. Give an example of a vertical
integration.

Use 3-5 sentences each to describe 2 examples of vertical
integration in the real world, then state the advantages and
disadvantages of vertical integration using the table below
Example 1:
Example 2:
Summary of pros and cons of vertical
integration
Pros
Cons

Doncon Guitars is interested in pursuing backward integration to
take greater ownership of the extraction of raw materials and
production of components used in its signature line of guitars.
Although this approach would lower the overall cost of producing a
guitar, the costs associated with producing electronic pickups for
sound amplification are far greater than those associated with
sourcing pickups from a reliable supplier. Which of the following
approaches is likely to produce superior results?
A. pursue taper integration
B....

What are three types of opportunities for sharing that form a
sound basis for diversification or vertical integration? Give an
example of each from companies you have read about.
(So far I have backward integration and forward integration.
Can't think of a third)

What are the competitive advantages of vertical integration?

in the Gauss Elimination, what is the
difference between the forward substitution and the backward
substitution?

What is Uber corporate strategy? is it Vertical integration or
Horizontal integration ( Related or Unrelated Diversification)

What are the advantages and disadvantagrs of vertical integration
for firm?

Give some examples of when you would use the technique of
Approximating Integration? Also, give an example of a technology
tool that you can use to Approximate Integrals. Answer "Briefly"
please. Thank you

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