Dfine the types of integration

1.	Dfine the types of integration
Answer» The main TYPES of integration are: BACKWARD vertical integration This involves acquiring a business operating earlier in the supply chain – e.g. a retailer buys a wholesaler, a brewer buys a hop farm Conglomerate integration This involves the combination of firms that are involved in UNRELATED business activities Forward vertical integration This involves acquiring a business further up in the supply chain – e.g. a vehicle manufacturer buys a CAR parts distributor Horizontal integration Here, businesses in the same industry and which operate at the same stage of the PRODUCTION process are combined.

Answer»

The main TYPES of integration are:

BACKWARD vertical integration

This involves acquiring a business operating earlier in the supply chain – e.g. a retailer buys a wholesaler, a brewer buys a hop farm

Conglomerate integration

This involves the combination of firms that are involved in UNRELATED business activities

Forward vertical integration

This involves acquiring a business further up in the supply chain – e.g. a vehicle manufacturer buys a CAR parts distributor

Horizontal integration

Here, businesses in the same industry and which operate at the same stage of the PRODUCTION process are combined.

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