Horizontal growth
It is a
strategy where a company acquires, mergers or takes over another company in the
same industry value chain. In general it is the strategy of seeking ownership
of or increased control over a firm’s competitors.
Example: Sun, SMART
Vertical growth
It is the degree
to which a firm owns its upstream suppliers and its downstream buyers. The term describes
a style of management control.
Examples:
Apple Inc.
• Processor • Software
It consist of-
(1)Forward integration: A firm undergoes this strategy when
it controls distribution centers and retailers where its products are sold.
Example: Textile mill -> Retail
show room
(2)Backward
integration: A firm undergoes this strategy when it controls suppliers that
produce some of the inputs used in the production of its products.
Example: Ginning mill
< Textile mill
Spinning mill
