Directions of growth
From WikiTextbook
When two businesses join together we called it integration. There are four different types of integration.
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Horizontal Integration
Horizontal integration takes places when one business integrates with another business at the same stage in the chain of production, for example, if Walkers Crisps takes over Golden Wonder.
Vertical Integration
Vertical integration takes places when one business integrates with another business at a different stage in the chain of production. Backward vertical integration occurs if the business takes over a business before it in the chain of production, for example, if Walkers Crisps takes over a potato farm. Forward vertical integration occurs if the business takes over a business after it in the chain of production; for example, if a potato farm takes over Walkers Crisps.
Lateral Integration
Lateral integration takes place when two businesses integrate that have related goods but they do not compete directly with each other, for example, if Walkers crisps merged with McCain chips.
Conglomerate Integration
Conglomerate integration takes places when one big business integrates with another smaller business in a completely different market, for example, if Walkers Crisps takes over Next.
