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Vertical Integration Case Study

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3. Horizontal integration involves the acquisition of a common company from similar firms with an aim of expanding in size, diversification of the products, achievement of economies of scale, reduction of competition and reaches new markets. Vertical integration entails companies acquiring a company that operates before or after the acquiring company in the production process. Vertical integration can attract forward, backward or balanced integration depending on the decision to own another company or not (Bissell, 2013). The essence of leverage by businesses is to multiply profits and reduce losses in financing business. Leverage harmonizes the expected technologies bringing about both efficiencies and differentiation in innovation. In this
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