The Student Room Group
Reply 1
Vertical growth/integration is when a firm buys up or merges with another firm at a different stage in the same production process. A steel producer buying an iron ore mining company would be an example of this. Backwards vertical integration is buying or merging with a firm at an earlier stage in the same production process. Forward vertical intergration is buying or merging with a firm at a later stage in the same production process.

Horizontal growth/integration involves buying or merging with another firm at the same stage of the same production process, e.g. a supermarket chain buying up another supermarket chain (Morrisons and Safeway).

Lateral growth/integration is where a firm buys or merges with a firm in a different production process, e.g. a car manufacturer buying up a food processing firm.
Reply 2
you are a legend
The Gaffa
Vertical growth/integration is when a firm buys up or merges with another firm at a different stage in the same production process. A steel producer buying an iron ore mining company would be an example of this. Backwards vertical integration is buying or merging with a firm at an earlier stage in the same production process. Forward vertical intergration is buying or merging with a firm at a later stage in the same production process.

Horizontal growth/integration involves buying or merging with another firm at the same stage of the same production process, e.g. a supermarket chain buying up another supermarket chain (Morrisons and Safeway).

Lateral growth/integration is where a firm buys or merges with a firm in a different production process, e.g. a car manufacturer buying up a food processing firm.

im repping you on behalf of the other guy since that was a useful and well written post and OPs rep is worth little
Reply 4
Thanks! :smile:
what are the advantages