Understanding Business 5) - Growth
- Created by: joannewatson
- Created on: 09-04-18 10:58
Fullscreen
Growth
Horizontal Integration
This is the combining of two firms operating at the same stage of profuction (think of this like the horizion, is a straight line along the way, so it makes sense that they are at the same level of profuction ). E.g. two supermarkers, one might join with another in order to
- eliminate competition and increase market share
- achieve greater enconomies of scale, such as greater discounts as a result of now being able to buy inputs in larger quanities
- accuire the assets of other firms, therefore meet the needs of more people
- become stronger and…
Comments
No comments have yet been made