Pros and Cons of Vertical Integration Flashcards
1
Q
What is inorganic growth?
A
when a firms grows by merging with or acquiring another firm
2
Q
What is vertical integration?
A
when a firm integrates with another firm at a different stage of production in the same production process
3
Q
Pros of vertical integration
A
control of the supply chain
reduce intermediary costs
better access
4
Q
Cons of vertical integration
A
regulation
costs from DEOS and acquisitions
may lack expertise
