common questions Flashcards
1
Q
what is the horizontal intergration method of growth?
A
when two firms at the same stage of product combine
an advantage of this would be it eliminates competitors, which means that it increase marketshare
2
Q
what is the backwards vertical method of growth?
A
when one firm joins another in the earlier stages of production
an advantage of this would be it reduces the cost of suppliers, this means that the business keeps most of their revenue
3
Q
whats forward vertical intergration?
A
when one firm joins another in the later stages of production
an advantage of this would be the business can control pricing and promotion, this means that
