Discussion Post
Provide an example of a vertical or horizontal integration strategy that a firm applied. If you can provide an experience you have had regarding integration that would be fine. How did the integration aid the company in building competitive advantage? Explain what the advantages and disadvantages of applying that strategy are in the context of the company and given our course work during the week.
For example, a company may choose to vertically integrate to achieve full control over the supply of the raw materials to manufacture its products. It may also employ vertical integration to take over the reins of distribution of its products. You will learn about the advantages and disadvantages of a vertical integration strategy.
In contrast, horizontal integration is another competitive strategy that companies use. Horizontal integration is the acquisition of business activities that are at the same level of the value chain in similar or different industries. In simpler terms, horizontal integration is the acquisition of a related business: fr example a fast-food restaurant chain merging with a similar business in another country to gain a foothold in foreign markets.
Learning Outcome:
o Describe how to strengthen a company's competitive position.
Learning Objectives:
A. Examine the pros and cons of extending a company's scope of operations via vertical integration.
B. Describe the benefits of expanding horizontally through mergers and acquisitions.
C. Demonstrate an understanding of key strategic terminology.
YouTube Video: "Horizontal and Vertical Integration (Business Growth Strategy)".
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.