Integration Strategy

Vertical Integration
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azeem
Student (MBA), Pakistan

Integration Strategy

Here's my summary of integration strategies:
1. VERTICAL INTEGRATION:
1A. Forward (Vertical) integration:
= Seeking ownership or increased control over distributors or retailers.
Forward integration involves gaining ownership or increased control over distributors or retailers.
You can gain ownership or control over the distributors or retailers using forward integration.
1B. Backward (Vertical) Integration:
= Seeking ownership or increased control over a firmís suppliers.
Both manufacturers and retailers purchase needed materials from suppliers. Backward integration is a strategy of seeking ownership or increased control of a firm's suppliers. This strategy can be especially appropriate when a firm's current suppliers are unreliable, too costly, or cannot meet the firm's needs.
2. HORIZONTAL INTEGRATION:
= Seeking ownership or increased control over a firm's competitors.
Horizontal integration refers to a strategy of seeking ownership of or increased control over a firm's competitors. One of the most significant trends in strategic management today is the increased use of horizontal integration as a growth strategy. Mergers, acquisitions, and takeovers among competitors.
Allows for increased economies of scale and enhanced transfer of resources and competencies.

  David Wilson
Manager, Canada
 

Is There a Third Dimension?

Hi Azeem. Have you ever consider a diagonal integration, where you may gain ownership in a market that can be used to su...

  Leonard Caillouet, United States
 

3. Orthogonal Integration

To the strategic integration models suggested by azeem, I would suggest a third dimension would be partnerships orthogon...

  Paramathmuni srinivas Kumar
India
 

Strategies beyond Competition

The integration strategies discussed above are based on control and taking ownership of other firms (assumptions). If t...

  Ajaya Shankar Gupta Ainapur
Management Consultant, India
 

Vertical and Horizontal Integration are the Main 2

The main classification of Integration Strategies is Vertical and Horizontal. All other strategies can be based on thes...

  Murtaza Syed
Consultant, Pakistan
 

FMCG Multinationals are Practicing Horizontal Integration

I appreciate azeem has shared the summaries of these strategies, it seems vertical integration is a more traditional, co...

  Onyango Lucius
Events Marketer, Uganda
 

Only 2 Dimensions in Strategic Integration

I think there really are only two dimensions in strategic integration, but other options can be based on these two (vert...

  Adonis
Business Consultant, France
 

Focus Strategy on Own Firm's Strategy or Think Beyond that?

@srinivas proposes a good view. We don't need geometric figures for something related more to flows than to static prope...

  Walter Berns
Strategy Consultant, United States
 

Horizontal Integration Tends to Monopolizing

The unfortunate thing about mergers and takeovers is the overall niche of the business would tend to become monopolized ...

  James Mudzikitiri
Business Consultant, Zimbabwe
 

Integration Strategies Reaction to External Enviroment

Integration strategies can also be embarked on as a platform for strategic change to counter changes in macro economic f...

  Jay Lo
Partner, Taiwan
 

The Third Dimension

To me the third dimension would be people. Integration is not just about merging two businesses to achieve a better set ...

  Leonard Caillouet, United States
 

Limited Dimensions of Integration Strategy Models

To those who point out that there are primarily these two dimensions for strategic integration, I understand that. But ...

  faisal
Manager, Pakistan
 

Example of Diagonal Integration

@David Wilson: Can you give any example of such 'diagonal integration'? I would really appreciate that......

  Sandhya.R
Professor, India
 

Integrating All Activities in the Strategy

Integration strategy is not only a concept applicable to mergers and acquisitions but in the broader sense it could also...

  Tom Wilson
HR Consultant, United States
 

Horizontal and Vertical Integration

The military depends upon the chain of command for vertical integration and staff officers, the Military Entrepreneurs i...

  eduardo oliva
Professor, Mexico
 

Flexible Integration Strategies

May I suggest that we could approach this integration subject in a flexible manner? Consider that our business climate ...

 

More on Vertical Integration:
Summary
Forum
Examples and Case Studies of Vertical Integration
Symbiotic Resource Interdependencies
(Legal) Limits to Vertical Integration
🔥Food Security in Food Distribution
Orthogonal Integration
Vertical Integration Cum Diversification
Advantages of Vertical Integration
Disadvantages of Vertical Integration
Flexible Integration Strategy
Alternatives of Vertical Integration?
Captive Distribution
Quasi Vertical Integration
Best Practices
👀Integration Strategy
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