The different types of external growth through merger and takeover
What is horizontal growth through mergers and acquisitions?
Horizontal growth refers to the expansion of a business by acquiring or merging with competitors operating in the same industry or offering similar products or services. It aims to increase market share, eliminate competition, achieve economies of scale, and enhance overall business performance.
How does vertical growth occur through backward and forward integration?
Vertical growth occurs through backward integration when a company acquires or controls suppliers or resources in its supply chain. Forward integration happens when a company acquires or controls distributors or retailers to gain control over distribution channels or secure access to customers. Both forms of integration enable companies to increase control, streamline operations, and capture more value within the supply chain.