vertical integration_forward integration_horizontal merger

Advantages to secure a greater control of the competitive environment. Backward integration can secure supplies of components whose availability and price to compes can be controlled.to keep distinctive competence or capability in-house and not available to compes. increased flexibility available when using a number of suppliers to meet fluctuations in demand.

DisadvantagesCost incurred in owning major elements of the supply chain. Risk - company is not competitive against companies who are focusing their resources and skills on particular elements of the supply chain.

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