The Integration of Firms Expansion of firms Firms
- Slides: 31
The Integration of Firms
Expansion of firms Firms may expand by n internal growth n combining with other firms --- integration
Horizontal Integration n firms producing the same product or at the same stage of production combine together
Horizontal Integration n firms producing the same product or at the same stage of production combine together
Horizontal Integration n firms producing the same product or at the same stage of production combine together
Horizontal Integration n firms producing the same product or at the same stage of production combine together
Horizontal Integration n firms producing the same product or at the same stage of production combine together
Horizontal Integration n firms producing the same product or at the same stage of production combine together
Vertical Integration n firms operating at different stages of production for a certain good combine to form a larger firm
Vertical Integration n firms operating at different stages of production for a certain good combine to form a larger firm
Vertical Integration n firms operating at different stages of production for a certain good combine to form a larger firm
Vertical Integration n firms operating at different stages of production for a certain good combine to form a larger firm
Vertical Integration n firms operating at different stages of production for a certain good combine to form a larger firm
Lateral Integration n firms producing related, but not competitive products combine to form a single firm
Lateral Integration n firms producing related, but not competitive products combine to form a single firm
Lateral Integration n firms producing related, but not competitive products combine to form a single firm
Lateral Integration n firms producing related, but not competitive products combine to form a single firm
Lateral Integration n firms producing related, but not competitive products combine to form a single firm
Conglomerate Integration n Firms in entirely different lines of production combine together
Conglomerate Integration n Firms in entirely different lines of production combine together
Conglomerate Integration n Firms in entirely different lines of production combine together
Conglomerate Integration n Firms in entirely different lines of production combine together
Conglomerate Integration n Firms in entirely different lines of production combine together
Conglomerate Integration n Firms in entirely different lines of production combine together
Why do firms combine? n Can you suggest some motives for integration of firms?
Motives for integration n n n To enjoy economies of scale To have more flexibility in the use of resources To build up brand name To ensure supply of materials or market outlets To diversify risks To expand market share v Horizontal integration v Vertical integration v Lateral integration v Conglomerate integration
Motives for integration n n n To enjoy economies of scale To have more flexibility in the use of resources To build up brand name To ensure supply of materials or market outlets To diversify risks To expand market share v Horizontal integration v Vertical integration v Lateral integration v Conglomerate integration
Motives for integration n n n To enjoy economies of scale To have more flexibility in the use of resources To build up brand name To ensure supply of materials or market outlets To diversify risks To expand market share v Horizontal integration v Vertical integration v Lateral integration v Conglomerate integration
Motives for integration n n n To enjoy economies of scale To have more flexibility in the use of resources To build up brand name To ensure supply of materials or market outlets To diversify risks To expand market share v Horizontal integration v Vertical integration v Lateral integration v Conglomerate integration
Motives for integration n n n To enjoy economies of scale To have more flexibility in the use of resources To build up brand name To ensure supply of materials or market outlets To diversify risks To expand market share v Horizontal integration v Vertical integration v Lateral integration v Conglomerate integration
Humanities Unit Curriculum Development Institute
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