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Vertical And Horizontal Integration

408 Words2 Pages

Vertical and horizontal integration are an activities allowed companies to gain competitive advantages, First the vertical integration is the complain of firms at a different level of production or distribution in the same industry ,When the company distribute its work in different areas but in the same way of production like when Zara have a retailer and supplier this can help Zara to reduce the cost and improve the quality from decreasing the cost of transporting and the time that take it ,But some time it good for the company to depends on the specialized knowledge and economic of scale from another companies(4) ,On the other side the horizontal integration known as the companies between the company in the same level of production or

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