17 Differentiate between vertical & horizontal growth strategies of a business. [6]

[Sir Afzal Shad]

Q17 Differentiate between vertical & horizontal growth strategies of a business. [6]

Possible Answer (Complete it):
[KN] Horizontal integration is taking over your competitor, whereas vertical is about integrating with suppliers /customers (whole sellers, retailers)
[AN] Hard Rationalization in horizontal integration /less rationalization in vertical.
[AN+]

[KN] Focus is on "Exclusivity" in forward vertical whereas "greater market share" in horizontal integration.
[AN]
[AN+]

[Kumail Alvi]

[KN] Nature of Expansion
[AN] Vertical Growth Strategy Involves expanding within the same industry but at different stages of the production or distribution process. It can be upward (towards the source of raw materials) or downward (towards end consumers).
Horizontal Growth Strategy Involves expanding into new markets or industries that are related or unrelated to the company's current operations.
[AN+] Both are expansionary ways but in different markets.

[KN] Risk and Diversification
[AN] Vertical Growth Strategy Generally involves lower diversification and can be riskier because it relies on the same industry's fortunes.
Horizontal Growth Strategy Offers greater diversification as it enters different markets, reducing the reliance on a single industry or market.
[AN+] Both have risks but Horizontal has higher risks as it changes the market whereas vertical have lower risks because it is in the same market

[Syed Raza]

[KN] Expansion
[AN] Horizontal growth, also known as lateral growth, involves expanding a business's operations or market presence within its existing industry or market segment. The focus is on broadening the scope of products or services offered to the same target audience. while Vertical growth, also known as integration growth, involves expanding a business's operations along the supply chain in either a forward or backward direction. It focuses on controlling more stages of the production or distribution process.
[AN+] both can lead to positive effect but not in same segment market.

[KN] Competitive advantage
[AN] The goal of horizontal growth is to strengthen the company's competitive position within its current industry, often by capturing a larger share of the market, increasing sales, and leveraging existing customer relationships. while in vertical growth the goal of vertical growth is to increase operational control, reduce costs, enhance quality, and gain a competitive advantage by owning or controlling various stages of the supply chain.
[AN+] thus both leading to efficient output and leading to expansion of firm

[hafsa kashif]

[kn] expansion
[an] horizontal growth is merging with a business in the same sector level as u whereas vertical is merging with a business at a different level above or below u.
[an+] making the goal of horizontal growth to increase market share while vertical growth focuses on greater control over the production process

[Syed Mustafa Ali]

[KN]Vertical growth involves expanding within the same industry but at different stages of the supply chain.While horizontal growth involves expanding into new markets or diversifying products/services within the same stage of the supply chain.
[AN] In vertical growth the goal is to gain more control over the supply chain, reduce costs, and improve efficiency.
[AN+] In horizontal growth the aim is to broaden the business's scope and reach, potentially reducing risk by not relying solely on one product or market.

[KN] Vertical growth can be either backward integration (moving into suppliers' roles) or forward integration (moving into customers' roles). While Horizontal growth typically focuses on increasing market share and diversifying offerings to a wider customer base.
[AN] vertical growth aims to achieve greater control over the supply chain, reduce costs, and potentially enhance the company's competitive advantage by either sourcing its own inputs
[AN+] horizontal growth is about broadening the business's scope and reach by either consolidating within the existing market through mergers and acquisitions or diversifying product or service offerings to cater to a broader customer base.

[khuram khan]

[KN]Vertical growth involves expanding within the same industry but at different stages of the supply chain. While horizontal growth involves expanding into new markets or diversifying products/services within the same stage of the supply chain.
[AN] In vertical growth the goal is to gain more control over the supply chain, reduce costs, and improve efficiency.
[AN+] In horizontal growth the aim is to broaden the business's scope and reach, potentially reducing risk by not relying solely on one product or market.

[KN] Vertical growth can be either backward integration (moving into suppliers' roles) or forward integration (moving into customers' roles). While Horizontal growth typically focuses on increasing market share and diversifying offerings to a wider customer base.
[AN] vertical growth aims to achieve greater control over the supply chain, reduce costs, and potentially enhance the company's competitive advantage by either sourcing its own inputs
[AN+] horizontal growth is about broadening the business's scope and reach by either consolidating within the existing market through mergers and acquisitions or diversifying product or service offerings to cater to a broader customer base.

[Talha Asim]

(Kn)nature of expansion(an)in vertical growth the firm expands in the same industry but a different stage of production where as in horizontal growth the firm is in the same stage of production but expands to a different industry (an+) vertical growth can help in expanding reach of the same market yet horizontal can expand reach in other markets
(Kn) vertical growth may mainly be done for ease of the firm but horizontal growth may mainly be done to increase the variety of a firm(an) horizontal growth results in production of different products but vertical growth results in supplying, manufacturing and selling of the same product and its making (an+) such expansion strategies are used as per the objective

[Shaliza khawaja]

(kn)taking over your competitors vs integrating with your supplier
(an)the action of implementing is stronger whereas in vertical integration it is softer
(an+)in horizontal due to many rules worker might get frustrated in vertical workers might be more relaxed
(kn)exclusivity vs greater market share
(an)attracts more investors however in vertical greater market share can make you a stronger trend setter
(an+)firm might expand due to investment and on the other hand being a stronger setter can lead to your products be different from competitors

[ayyan ali]

[KN]involves a business expanding along its supply chain[vertical]
[AN]and their goal is to imrove efficiency with in the existing industry b achieving cost saving quality control ,
[AN+] by this they can capture more value with in supply chain,

[KN]Focuses on expanding by acquiring b merging with conpanies in same and similar industry in market,
[AN]their goal is to achieve economies of scale.diversify offering,
[AN+]can gain a competitive advantage through a larger market presence.

[Hadia Zia]

[KN] Horizontal integration is taking over your competitor, whereas vertical is about integrating with suppliers /customers (whole sellers, retailers)
[AN] Hard Rationalization in horizontal integration /less rationalization in vertical.
[AN+] Horizontal has higher risks however vertical has lower risks.


[KN] Vertical means expanding into the same market however horizontal growth refers to expanding into new markets.
[AN] In vertical focus is more on gaining control on supply chains but in horizontal, the aim is to broaden business reach and achieve economies of scale.
[AN] Both ways can be used to expand but ofcourse on totally different levels.

[Maham fatima]

[KN]Horizontal integration is merging with a competitor business whereas vertical integration refers to merging with supplier/customer business
[AN] therefore in horizontal integration, hard rationalization can be done as the FOPS that perform same tasks in both businesses can be made redundant whereas soft rationalisation usually takes place in vertical integration as very less FOPS will be performing same tasks in both businesses
[AN] hence in horizontal integration there is relatively more positive synergy.


[KN] In horizontal integration a business stays in the same market however in vertical integration businesses enter new markets
[an]therefore horizontal integration allows to increase market share whereas vertical integration allows to target new markets
[an] hence throgh horizontal integration a business can become more competitive leading to becoming a market leader however in vertical integration a business can spread its risk

[Humzah Zafar]

[KN]Different type of expansion
[AN]In vertical integration you take over your competitors and in horizontal you integrate with suppliers.
[AN+]vertical integration contains more risk then horizontal

[KN]vertical is done to eliminate competition, horizontal is done to innovate products
[AN]Thus vertical makes running of the business easier including pricing decisions etc. Horizontal may lead to newer customer base reached
[AN+]Vertical can make a business sovereign whereas horizontal improves brand image and leads to customer loyalty

[Abbas17]

(KN) Vertical growth may mainly be done for ease of the firm but horizontal growth may mainly be done to increase the variety of the firm
(AN) horizontal growth results in production of different products but vertical growth results in supplying, manufacturing and selling of the same product and its making,
(AN+) such expansion strategies are used as per the objective of the businesses.

(KN) Horizontal integration is taking over your competitor, whereas vertical is about integrating with suppliers /customers (whole sellers, retailers)
(AN) Hard Rationalization in horizontal integration /less rationalization in vertical.
(AN+) as in horizontal integration businesses are able to make efficient decisions compared to vertical integration businesses.

[Areena]

[Kn]Different nature of expansion
[An]Horizontal integration means you are moving “horizontally” in your industry of merging with competitors with similar customer levels, whereas vertical integration is when you move “vertically” up or down the production process so you can own more of the production process internally. 
[An+]Thus verticle contains more risk than horizontal


[Kn]Focus is on diminution in cost in vertical whereas "greater market share" in horizontal integration.
[An]Horizontal integration is designed to help your company achieve new levels of growth, technology, geographic business expansion where as Vertical integration is designed to help bring production processes in-house to add internal capabilities and reduce costs in production
[An+] hence horizontal helps increasing sales due to geographical expansion whereas verticle increase control over supply chain

[Syed Mustafa Ali]

[KN]Vertical growth involves expanding within the same industry but at different stages of the supply chain. While horizontal growth involves expanding into new markets or diversifying products/services within the same stage of the supply chain.
[AN] In vertical growth the goal is to gain more control over the supply chain, reduce costs, and improve efficiency.
[AN+] In horizontal growth the aim is to broaden the business's scope and reach, potentially reducing risk by not relying solely on one product or market.

[KN] Vertical growth can be either backward integration (moving into suppliers' roles) or forward integration (moving into customers' roles). While Horizontal growth typically focuses on increasing market share and diversifying offerings to a wider customer base.
[AN] vertical growth aims to achieve greater control over the supply chain, reduce costs, and potentially enhance the company's competitive advantage by either sourcing its own inputs
[AN+] horizontal growth is about broadening the business's scope and reach by either consolidating within the existing market through mergers and acquisitions or diversifying product or service offerings to cater to a broader customer base.

COPIED from ME