Vertical vs Horizontal Integration
Key Differences Between Vertical Vs Horizontal Integration
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Horizontal Integration
1. Enhancing and increasing the size of the business.
2.
The requirement of capital here is higher.
Vertical Integration
1.
Developing the supply chain of the company.
2. Reduction of the wastage and cost.
Vertical integration can increase inventory turnover ratio by reducing supply chain costs and increasing control over inventory levels.
Backward Vertical Integration
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Backward integration: A company acquires its suppliers to control its supply chain and reduce costs.