vertical, horizontal and lateral growth - whats the difference between them?

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irfy
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Ye, could anyone explain to me how they are different? Im assuming Merger and Takeovers is lateral? Or is it? Im confused!
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The Gaffa
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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.
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irfy
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you are a legend
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sidewalkwhenshewalks
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(Original post by 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
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The Gaffa
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Thanks!
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the galaxy fire
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what are the advantages
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