How to Enlarge the Manufacturing Company

How to Enlarge the Manufacturing Company

The manufacturing industry can be enlarged in two ways. That is horizontal integration and vertical integration. Let's see what these two are one by one.

○ Horizontal integration 
Horizontal integration means a merger with another manufacturer that can produce the same product. This will increase the market share. If that's the case, then we will get the customers of that merger manufacturer. Financial assistance is also easily available through this merge activity.
○ Vertical integrations
Vertical integration is the process of buying pre-products or post-products of the manufactured product in the company. These are called vertical integration. It has two types: one is forward integration, and another one is backward integration. Forward integration is purchasing post-product. For example, car manufacturers acquire automobile dealers. Backward integration is purchasing pre-product. For example, the same car manufacturer purchases the tires from a tire manufacturing company.