When and how does the vertical integration become a solution for a company to maintain its...

When and how does the vertical integration become a solution for a company to maintain its competitive advantage? Enrich your answer by suitable examples from Saudi market?

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Expert Solution

The vertical integration of the business is based on its ability to do everything in its operations like raw material, distribution, production, and reduce cost with the integration of the processes together. This makes the product being made and distributed by the company itself. This gives the business a competitive advantage of the cost of production and the product quality and market demand wise supplies.

The business of Aramco is one that is into energy making and oil drilling based out of Saudi Arabia. The business of Armaco makes its drilling of petroleum and gas while is also making the electricity and selling it to the national government. The vertical integration of the business was been done which makes the business be made cost-efficient with the best use of technologies and assembly of the process assemble and integration which makes the business sell its products to the buyers. This integration made the business of Aramco have a competitive advantage over other oil or electricity to the market from production to sales to be cost-efficient.

keosha answered 1 year ago

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