Wednesday 17 March 2010

Horizontal And Vertical Intergration

Definition...
The term horizontal integration describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets.
Horizontal integration in marketing is much more common than vertical integration is in production. Horizontal integration occurs when a company is being taken over by, or merged with, another company which is in the same industry and in the same stage of production as the merged company e.g a car manufacturer merging with another car manufacturer.

Example of Horizontal and Vertical Intergration...

Warner Bros Studios - Where production takes place
Warner Bros - Distirbution
Warner Bros Cinemas - Exhibition, used to own in the UK

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