Intergration strategies

Question 1

Integration strategies

Answer 1

Used by businessmen to gain control over suppliers or competitors

Question 2

Types of integration strategies

Answer 2

-Forward vertical integration
-Backward vertical integration
-Horizontal integration

Question 3

Forward vertical integration

Answer 3

The business merges with it distributor down the supply chain

-It involves the expansion of business activities to gain control over the distribution of products or services

-The business merges with businesses that were once their customers, while still maintaining control of the primary business activities

-The business takes over the distribution system that sells products to customers

Question 4

Backward vertical integration

Answer 4

-The business merges with its suppliers up the supply chain

-This is done to decrease the business’ dependency on suppliers

-The business expands its role to fulfill activities that were formerly completed by their suppliers

-It involves merging with another business which supplies products to the business

Question 5

Horizontal integration

Answer 5

-The business merges with other businesses in the same industry

-The aim is to reduce the threat of competition

-The business can expand its market share

-Its the takeover of a related business that operates at the same level of the supply chain in the industry