Business growth Maryam, Noor, Abrar, Aisha. G10

Horizontal When one firm merges with or takes over another one in the same industry at the same stage of production

Horizontal Example Corus accepted a take-over bid for 7.6 billion from Tata Steel. They are both from the same industry and work in the same stage of production.

Benefits of Horizontal Reduces the number of competitors in the industry. Opportunities for economic scales Combined business will have a bigger share of the total market than either firm before the integration

Vertical When one firm merges with or takes over another on in the same industry but at a different stage of production

Vertical Example One example of a vertical integration is the Carnegie Steel company. There is a backward integration, because the company controls the mills where the steel was made and merges with the mines where the iron ore is extracted.

Vertical Benefits The merger gives an assured supply of important components. The profit margin of the supplier is absorbed by the expanded business The supplier could be prevented from supplying other manufacturers The cost of components and supplies for the manufacturers be controlled

Conglomerate There are two main types of conglomerate mergers the pure one; When one firm merges with or takes over a firm in a completely different industry. The other one is mixed conglomerate merger are ones when the companies that are merging with each other are doing so with the main purpose of gaining access to a wider client base.

Conglomerate Example An example would be when a clothing company like aeropostale joining a company that sells jewelry like KAY JEWELERS.

Conglomerate Benefits&Limitations Assist the companies to diversity. Conglomerate mergers the merger companies can also bring down the levels of their exposure.