List and define the three types of integration discussed in Topic 5. Give an example of...

List and define the three types of integration discussed in Topic 5. Give an example of each. (Be specific)

Expert Solution

There are three types of integration that can be defined as:

1. Horizontal Integration

In horizontal integration, we see that 2 companies that sell a similar product at a similar level of implementation integrate with each other or one company acquires their direct competition.

Eg. Disney’s acquisition of Pixar can be considered as a horizontal integration

2. Vertical Integration

In vertical integration, we see that a company acquires another which is either up or down their supply chain in order to maximize their control process.

Eg. A shoe company buying a leather manufacturer, since they are not in a direct competition. We would consider it a vertical integration

3. Conglomerate integration

This is where 2 companies that work in a separate industry in a completely different environment or product type merge together.

Eg. Amazon’s acquisition of whole foods can be considered as a conglomerate integration since these two firms do not directly compete with each other and were not even in the same market.

keosha answered 6 months ago

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