Case Study on Vertical Integration
Case Study on Vertical Integration:
Vertical integration is connected with microeconomics and means the level of ownership of a holding, infrastructure, business processes, technologies, etc in the chain of processes required for the production of goods and services.
The vertically integrated holdings are controlled by the single owner and it is the main difference between the vertically and horizontally integrated companies. Generally, a company of a holding produces a single particular product for the sake of the whole holding. For example, in the modern agriculture exists such a chain: collection of crops, processing of the product, its transformation, sorting, packing, storage, transportation and sell to the consumer. The firm which controls all the processes or links of such a chain is called vertically integrated.The monopoly created with the help of vertical integration is called vertical monopoly. In comparison to the horizontal integration, which is associated with the consolidation of several companies, which produce similar goods and services, vertical integration focuses on the capture of the several links of the process of production in the hands of a single firm.
There are three types of vertical integration: backward, forward and balanced vertical integration. Backward vertical integration is the type of ownership of the companies which focus on the production of the material and details which will be used for the construction of the product. Forward vertical integration is the type of ownership of the companies, which take more final links in the chain of production (for example, storage, transportation and selling of a product). Balanced vertical integration is the type of ownership, which pays attention to both aspects embraced by the backward and forward vertical integration.The topic of vertical integration is quite important and interesting, because it is reasonable to control the process of production on all stages. When a student is asked to complete a good vertical integration case study, he will have to pay much attention to the problem, find out about its cause and effect.
One should collect enough reliable evidence for the analysis in order to be able to illustrate the case adequately and professionally. Moreover, high-quality trustworthy data will help a student to fulfil the core task of a case study assignment – suggest a good method which will solve the problem of the case well.Evidently, the web has become one of the most effective writing assistants for students, so one can read a free example case study on vertical integration prepared by the experienced writer and borrow the style and the manner of writing for his own paper. A good free sample case study on vertical integration can improve student’s knowledge on formatting, analysis and composition of the correct structure.