Any successful business person wants to be in charge of its business operations. Sometimes, a businessman has to play a leading role in order to get things in line. Integrations strategy is also about taking control over your business operations.
Integration strategy also goes by the name of the management control strategy. As the name implies, it provides the business an option to have control over various processes like competitors, suppliers, or distributors.
Businesses use horizontal strategy when they’re facing competition. A horizontal integration strategy is when a company acquires the supply chain system of the different/same industries that are operating at the same level. In other words, horizontal integration in similar businesses is when a fast-food brand merges with the chain of the related business in the other country and foreign market.
Businesses do it for various reasons like entering into the newer markets, expand the market, lower the risks, develop a unique product, achieve economies of scale, and increasing the company’s size and capabilities.
Some of the main advantages of horizontal integration are as follows – Enter into New Market, Market Power, Differentiation, Economies of Scale.
Businesses also use vertical integration when they’re facing competition. Vertical integration allows the company to have control over various stages of supply, distribution, and production.
Companies choose vertically-integrated strategy to make sure that they have complete control over the raw material, supply chain, and manufacturing processes. Most importantly, the purpose of vertical integration is to take charge of the distribution channels of the company’s products. Types of Vertical Integration are Forward Integration and Backward Integration.
The most important benefit of vertical integration that it helps the company to lower the cost and the business makes more profit as a result. Vertical Integration allows the company to have a smooth supply of raw material without inconsistency. When a company buys either one of the channels or both, its productivity and core effectiveness would increase.
This template will be useful for company leaders when preparing a company development strategy. You can prepare information about the need to implement one of the types of integration strategy in your company. University professors can use this template when preparing courses on effective company management or integration strategy.
Logistics and purchasing managers can use the slides in this template when preparing activities to reduce storage and transportation costs, or reduce the risk of supplier delays in deliveries. This template can also be used by startup leaders when preparing for a meeting with investors.
Integration Strategy is a professional and modern template that contains four stylish and fully editable slides. If necessary, you can change all elements of the slide in accordance with your corporate requirements. This template will be useful for startups, company executives, project managers and logistics managers. The Integration Strategy template will seamlessly complement your presentations and will be a great addition to your collection of professional presentations.