Re: 23 Analyse the benefits of vertical integration as growth strategies to a business. [6]
Posted: Mon Nov 06, 2023 10:53 pm
[Kn]Managing costs
[An]When an organization owns all the companies in the supply chain, it's often able to lower costs significantly more than would if it continued to work with separate companies involved in the production process.
[An+]These cost savings often allow companies to reduce prices for customers as well, which may result in higher profits over time.
[Kn]Lowering prices
[An]Vertically integrated companies can offer their products at a much lower price than companies that pay each organization in their supply chain for their work.
[An+] Lower prices often increase demand, leading to better brand recognition among consumers and higher profits
[An]When an organization owns all the companies in the supply chain, it's often able to lower costs significantly more than would if it continued to work with separate companies involved in the production process.
[An+]These cost savings often allow companies to reduce prices for customers as well, which may result in higher profits over time.
[Kn]Lowering prices
[An]Vertically integrated companies can offer their products at a much lower price than companies that pay each organization in their supply chain for their work.
[An+] Lower prices often increase demand, leading to better brand recognition among consumers and higher profits