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1 year ago

Which of Electrolux's foreign investments would be horizontal and which would be vertical? What are the advantages of each?

Business

1 answer:

Lady bird [3.3K]1 year ago

3 0

Answer:

The integration or growth of a company can occur horizontally or vertically, depending on whether it acquires competing companies that develop their business in parallel (horizontal integration), or it acquires companies or businesses that are in a different stage of the production process (companies that generate raw materials, transport, marketing, etc.).

Thus, if Electrolux expands its business by acquiring a competitor such as Whirlpool, it will be a case of horizontal integration. In contrast, if Electrolux acquires a company dedicated to the marketing of products, such as Best Buy, it will be a case of vertical integration.

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