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Vertical integration can be desirable because it secures supplies needed by the firm to produce its product and the market needed to sell the product, but it can become undesirable when a firm's actions become anti-competitive and impede free competition in an open marketplace. Vertical integration is one method of avoiding the hold-up problem.
Researchers reviewing plant and market data in the US cement and concrete industries over a 34-year span, found that vertical integration led to lower prices and higher quantities for consumers. Presumably, this was because of production efficiencies from integration which proved contrary to what one would otherwise expect in a market ...
The Vertical Integration Building was a building at Cape Canaveral Space Force Station in Florida, located at the far south end of the industrial area supporting SLC-40 and SLC-41. The building was one of the facilities of the Integrate-Transfer-Launch complex that was used to support Titan III and Titan IV launches.
Examples for tapered integration are (1) Tim Hortons owning some of its retail outlets but also using franchising, (2) Coca-Cola and Pepsi both having integrated bottling subsidiaries while also relying on independent bottlers for production and distribution in some markets, or (3) BMW which uses both in-house market research from its Corporate Center Development and external market research ...
A vertical market is a market in which vendors offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs. A horizontal market is a market in which a product or service meets the needs of a wide range of buyers across different sectors of an economy .
There have also been reports of collusion or vertical integration among farmers and online currency exchanges. In 2002, a company called Blacksnow Interactive, a game currency exchange, admitted to using workers in a "virtual sweatshop" in Tijuana , Mexico to farm money and items from Ultima Online and Dark Age of Camelot . [ 26 ]
Horizontal integration is the process of a company increasing production of goods or services at the same level of the value chain, in the same industry. A company may do this via internal expansion or through mergers and acquisitions .
Vertical disintegration refers to a specific organizational form of industrial production. As opposed to vertical integration, in which production occurs within a singular organization, vertical disintegration means that various diseconomies of scale or scope have broken a production process into separate companies, each performing a limited subset of activities required to create a finished ...