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Overall, internal expansion through horizontal integration can be a viable strategy for companies looking to achieve growth and gain a competitive advantage. [27] However, it requires careful planning, execution, and management to ensure success and mitigate potential risks.
Related to vertical expansion is lateral expansion, which is the growth of a business enterprise through the acquisition of similar firms, in the hope of achieving economies of scale. Vertical expansion is also known as a vertical acquisition. Vertical expansion or acquisitions can also be used to increase sales and to gain market power.
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 .
The benefits of high market share naturally led to an interest in growth strategies. The relative advantages of horizontal integration, vertical integration, diversification, franchises, mergers and acquisitions, joint ventures and organic growth were discussed. Other research indicated that a low market share strategy could still be very ...
Horizontal and vertical integration, about control of value chains Horizontal integration , when a company increases production of goods or services at the same level of the value chain and in the same industry (e.g via internal expansion, acquisition or merger)
Horizontal: based on a single characteristic but consumers are not clear on quality; Vertical: based on a single characteristic and consumers are clear on its quality [5] The brand differences are mostly minor; they can be merely a difference in packaging or an advertising theme. The physical product need not change, but it may.
Growth stocks: A growth stock is one that is expected to increase in value and beat the market, delivering higher-than-average returns over the long term. Growth stocks are typically from ...
There are two types of product line extensions, horizontal and vertical. Horizontal extensions consist of keeping the price and quality consistent, but changing factors like flavour or colour to differentiate the products. Vertical extensions consist of increasing and decreasing the quality and price to create inferior and luxury goods.