Market Integration pdf abitrage

https://shodhganga.inflibnet.ac.in/bitstream/10603/141940/10/10_chapter%202.pdf

When two businesses are brought together through a merger or takeover, it is possible to define the nature and type
of integration based on the activities of each business and where they operate in the supply chain of an industry.

The main types of integration are: jim railey

Backward vertical integration

This involves acquiring a business operating earlier in the supply chain – e.g. a retailer buys a wholesaler, a brewer buys
a hop farm

Conglomerate integration

This involves the combination of firms that are involved in unrelated business activities

Forward vertical integration

This involves acquiring a business further up in the supply chain – e.g. a vehicle manufacturer buys a car parts distributor

Horizontal integration

Here, businesses in the same industry and which operate at the same stage of the production process are combined.

Jim Riley

https://www.tutor2u.net/business/reference/types-of-integration
 Types of market integration

http://ecoursesonline.iasri.res.in/mod/page/view.php?id=16988

1. Horizontal integration

● This occurs when a firm or agency gains control of other firms or agencies performing similar marketing
functions at the same level in the marketing sequence. In this type of integration, some marketing
agencies combine to form a union with a view to reducing their effective number and the extent of
actual competition in the market. It is advantageous for the members who join the group.

2. Vertical integration

● This occurs when a firm performs more than one activity in the sequence of the marketing process. It is
a linking together of two or more functions in the marketing process within a single firm or under a
single ownership. This type of integration makes it possible to exercise control over both quality and
quantity of the product from the beginning of the production process until the product is ready for the
consumer. It reduces the number of middle men in the marketing channel.

a) Forward integration

● If a firm assumes another function of marketing which is closer to the consumption function, it is a case
of forward integration. Example: wholesaler assuming the function of retailing

b) Backward integration

● This involves ownership or a combination of sources of suppl. Example: when a processing firm assumes
the function of assembling/purchasing the produce from the villages.

3. Conglomeration

● A combination of agencies or activities not directly related to each other may, when it operates under a
unified management, be termed a conglomeration.