1 page/≈275 words
Business & Marketing
Vertical Intergration (Essay Sample)
Find an example of vertical integration within your city, or a city you know. Are there any particular advantages to this vertical integration? If so, what are they? If there are no such advantages, how do you explain the integration? --Your response should be at least 300 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. source..
Vertical integration of Wal-Mart Name: Institution: Date: Vertical integration occurs when there is integration in the value chain, and includes forward integration to consumers and retailers or backward integration through suppliers (Hill & Jones, 2012). This diversification strategy is vital for companies as it enhances competition by reducing costs across the distribution channel. Wal-Mart has diversified by opening numerous kinds of stores to cater for different niche markets where most tend to be near distribution points. Furthermore, Wal-Mart has used vertical integration to influence the supply chain to its advantage. Wal-Mart has the benefit of controlling costs by eliminating long lists of suppliers which in turn reduces negotiation and shipping costs. Thus, there is no threat from suppliers and Wal-Mart is ...
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