Business Growth Strategy Using Vertical Integration

Vertical Integration Reflection Post
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Vertical Integration Reflection Post
The contemporary business landscape is characterized by intense competition. Within this environment, firms are pursuing distinct strategic moves to remain competitive in the long term. One of these strategies includes vertical integration – a business approach whereby the enterprise owns and controls its distributors, suppliers, as well as retail outlets to have a firm grip of its supply chains and value. Despite the disadvantages noted in the video, such as reduced diversification levels, I would recommend vertical integration since it enables companies to enhance efficiencies while mitigating costs. However, it should be noted that vertical integration is costly to establish, and its coordination effectiveness is typically uncertain (Mai, 2020). In this way, there is the need to train managers on how to effectively coordinate activities within the vertical ...