If a construction company wishes to expand horizontally then
there are various horizontal integration strategies that it can
implement
- New product offerings in similar industry: If the company is
currently into residential construction projects, then it can
expand by start working on commercial construction projects like
office spaces, shopping malls, industrial constructions, roads,
bridges, public transport infrastructure etc
- Acquiring smaller companies in similar industry: The company
can acquire smaller companies that are working in same or similar
industry like repair, reconstruction, maintenence etc.
- Expanding in new geographies: The company can start its own
subsidiaries or acquire companies in new geographies where it
wishes to expand its business
If a construction company wishes to expand vertically then there
are various vertical integration strategies that it can
implement
- Starting its own fleet of trucks and vehicle for reducing
reliance on third party fleet operators. This will help the company
reduce logistics costs while procuring raw materials like cement,
bricks etc.
- Starting its own manufacturing line of raw materials like
cement, paint, bricks, etc. to reduce procurement cost and ensure
steady supply of resources
- If the architecture/ interior designing work is currently
outsourced, then the company can vertically integrate in these
industries
- The company can forward integrate into real estate mortgage and
financial industry