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Examples of Market Integration Strategies

The document discusses three types of market integration: horizontal integration which refers to mergers between similar companies, vertical integration which refers to mergers along the supply chain either forward towards consumers or backward towards suppliers, and conglomeration which refers to mergers between unrelated industries. Examples are provided for each type of integration.

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Dior Codm
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21 views2 pages

Examples of Market Integration Strategies

The document discusses three types of market integration: horizontal integration which refers to mergers between similar companies, vertical integration which refers to mergers along the supply chain either forward towards consumers or backward towards suppliers, and conglomeration which refers to mergers between unrelated industries. Examples are provided for each type of integration.

Uploaded by

Dior Codm
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

NAME: DE LEON, JOHN RUSSELL

YEAR/SEC: BSMT 1-1


INSTRUCTOR: Sir Rovin A. Calagos,LPT
ACTIVITY
INSTRUCTION:
Cite different example of Market Integration.

1. HORIZONTAL INTEGRATION
- This refers to the merger or acquisition of companies that operate in the same
industry or produce similar products.

For example:
• The merger of two automobile manufacturers to create a larger and more competitive
company.

2. VERTICAL INTEGRATION
- This refers to a business strategy where a company expands its operations by
acquiring or merging with other companies along its supply chain.

Forward Integration: This occurs when a company expands its operations towards the
end consumer by acquiring or merging with distributors or retailers.

Example:
• Coca-Cola Company owns and operates various soda fountains and vending machines,
enabling them to directly distribute their beverages to consumers.

Backward Integration: This happens when a company expands its operations towards its
suppliers by acquiring or merging with them.

Example:
• McDonald's Corporation owns meat processing plants and vegetable farms to ensure a
steady supply of quality ingredients for their fast-food restaurants.

Balanced Integration:This refers to a combination of both forward and backward


integration

Example:
• IKEA, the Swedish furniture retailer, sources its own materials, designs its furniture,
manufactures it in-house, and sells the products through its own stores.

3. CONGLOMERATION
- This refers to the merger or acquisition of companies that operate in unrelated
industries.
Example:
• A media conglomerate that owns television networks, movie studios, and publishing
companies.

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