Monopolies+(2-5)

Vertical Integration- Vertical integration is a type of management control. Andrew Carnegie introduced the idea of vertical integration. It is a type of ownership and control in which all stages of production are controlled by one company. Products and services are brought together to satisfy a common need. There are three varieties of vertical integration, backward, forward, and balanced. This benefits society by providing better opportunities for investment growth through reduced uncertainty.

Horizontal Integration- Some examples of horizontal integration are a media company’s ownership of television, newspapers, magazines, and books. Some advantages of Horizontal Integration would be economies of scale, economies of scope or by operating factories in foreign markets that reduce the cost of international trade. Some bad things about Horizontal Integration are that competitors would have to increase a firm’s market share. Some trust issues may arise from business problems. Horizontal Integration strategies should be formulated by the corporate management. Today, many people own media companies that sell televisions, newspapers, magazines, and books. In the future it will be a huge trust issue.

2 Group 5