Vertical integration as a business strategy
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Abstract
Vertical integration is a business strategy used in many ways by large corporations to reduce transaction costs that are equivalent to hiring another company to generate a service that depends on its production. In other aspects, vertical integration can cause the creation of monopolies, the elimination of competitors, and this due to market imperfections, although this should not always be the excuse. The research methodology is a bibliographic review type. And the general conclusions is that it is complex to define whether to integrate vertically is good or bad, or more efficient, since it will depend on the type of market where it is competed and all the elements that surround the production of a company.
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References
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