Monopolies+(2-1)

Vertical Integration: This form of distribution works with the service of a single company. It helps the company gain over all power in the marketplace. There are three main types of vertical integration. The first is backward vertical integration, this is where they have different little companies that go together and help strengthen the main company. For example, a tire store and medal store are owned by a car dealership. This then makes better products for your company and lowers prices. The second is forward vertical integration. In this form of integration you have many small companies and distribute to consumers. For example, chains of companies use this type. The third is balanced vertical integration. This is a mixture of both forward and backward integration. Steel companies are the most common to use this method. An advantage to this is your company has more control, and it lowers costs, however it makes design time much longer.

Horizontal Integration: This form of integration works with business at equal level as chains. The advantages to this type are that there is less stress and competition. Also it makes customers more happy and it influences over top suppliers. The disadvantages of this are that you have to share more products and more of similar products are sold. This gives less independence but works just as well.

Mass production: This is when you are producing huge amounts of products at once to lower costs. The costs are lowered because they don’t have to hire as many workers. This is only possible because they use conveyor belts instead of labor workers, which cuts down on time and money.

Buying In Bulk: This is when you are buying products in large quantities to save yourself money. For example, you can do this in wholesale stores today like BJ’s and Sam’s Club.

All of these sub topics relate to today in a big way. These different types of integration started as a new way of life during the Industrial Revolution and it eventually taught us a lot about how to run a business today. All of these things will help your business today no matter how simple it sounds. Everyone likes to save money today so this is how you can do it. 2 Group 1