Welcome to Study Room, where you can ask questions and receive answers from other members of the community.
0 like 0 dislike
154 views
in Grade 12 by Master (716k points)

1 Answer

0 like 0 dislike
by Master (716k points)
 
Best answer

Reasons why businesses use integration strategies

  • Businesses use integration strategies when they want to expand their scope of operations.
  • Distribution channels of products are shortened/middleman is eliminated, therefore supply/distribution challenges are managed more effectively/Gain more control over the distribution channel.
  • Gain direct distribution by obtaining franchise/mergers/Take control of other businesses which produce/sell similar products/services.
  •  Access new markets.
  • New/Different products can be offered.
  • Creates an opportunity for synergy, e.g. two businesses achieve more when combining resources.
  • Reduce operating costs.
  • Less competition, as similar businesses in the market were taken over/ eliminated.
  • Ensure reliable flow of raw materials/finished goods at competitive prices.
  • Any other relevant answer related to reasons why businesses may use integration strategies.
Welcome to Study Room, where you can ask questions and receive answers from other members of the community. Members/Users are also allowed to answer any questions or add comments. If you think a certain answer is wrong or slightly incorrect' please use the comment button below the answer to add your suggestion.

Let's see how smart you are Click/Touch Here To help other students on their questions

...