What are the advantages of verticle intergration?

ADVANTAGES OF VAERTICLE INTERGRATION Please allow me to give my little contribution to this question. I hope that this contribution will help kick off the discussion on this subject The information I have contributed can be critisised or any iformation that I have missed can be added ADVANTAGES OF VERTICLE INTERGRATION 1. Cost reduction This is brought about due to internal transations that take place between subsidiary companies within the business.

Since the business has a central management, most of the transactions are done internally with the same management and staff and also transaction bills like phones and intranet are cheaper when done internally 2. Lower risks Since it is one company doing the transactions, most risks are avoided. Risks like handling, transportation, and quality.

You are assured that your products will be handled by people who know your requirement since you operate under the same central management systems 3. Market monopy When a company intergrates vertically, it has a wide ability to monopolise the market. With the help from your subsidiary companies you can operate as one big empire on the market and therefore prevent any more knew entrants onto the market - hense the full control Victor Mphedwa CIPS Student - MALAWI.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.

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