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Differ between Vertically Integrated Diver...

Differ between Vertically Integrated Diversification and Horizontally Integrated Diversifica...

Differ between Vertically Integrated Diversification and Horizontally Integrated Diversification.

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Chiranjibi Chapagain Mar. 08, 2018

When a company wishes to grow through a horizontal integration, it is looking to acquire a similar company in the same industry. It may be seeking to increase its size, diversify its product offerings or services, achieve economies of scale, reduce competition, or gain access to new customers or markets. 

A company looking to achieve vertical integration is seeking to acquire a company that operates in the production process of the same industry It may be seeking to strengthen its supply chain, reduce its production costs, capture upstream or downstream profits, or access downstream distribution channels. To do this, one company acquires another company that is either before or after it in the supply chain process.

Differ between Vertically Integrated Diversification and Horizontally Integrated Diversification.

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