Q1. Provide an example of a vertical or horizontal integration strategy that a firm applied it based on the reading from our Thompson text and the associated other material. How did the integration aid the company in building competitive advantage? Explain what the advantages and disadvantages of applying that integration strategy are in the context of the company.
Note: 250 words with intext citations and references must.
Q2. Please read the below paragraph and write your opinion.
Note: 150 words with intext citations and references must.
Advantages of horizontal integration
· A company is more likely to continue expanding due to increased popularity.
· A company is more likely to enjoy economies of scale due to increased production capacity (Marmolejo-Saucedo, 2018). Heinz and Kraft Foods enjoyed economies of scale since they had to produce more for them to meet the demand for their products.
Disadvantages
· Horizontal integration is disadvantageous to the acquired company. For example, if Company A acquires Company B, Company B is more likely to lose control over its operations.
· It is more likely to lead to monopoly.
Q3. Please read the below paragraph and write your opinion.
Note: 150 words with intext citations and references must.
An exemplary example of vertical or horizontal integration strategy is that of the Carnegie Steel Company, which not just purchased iron mines to guarantee the stockpile of the crude material yet additionally took over rail lines to reinforce the circulation of the eventual outcome( Sujit, S,Oct 9, 2018). . The system assisted Carnegie with delivering less expensive steel, and engaged it in the commercial center.
The advantages the company received after using the strategy is that it smoothen its production network by guaranteeing prepared inventory of tires and electrical segments in the specific details that it requires (UKEssays. November 2018. Also makes it dispersion and after-deals administration more proficient by opening its own display areas. Some of the other benefits that would have gone to the rail and electrical organizations and display areas possessed by others.
