Gena Aman
Jan 19
Write the four type of business consolidation?
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Jan 19
1. Horizontal consolidation: This type of consolidation occurs when companies operating in the same industry or sector merge or acquire each other. The aim is to increase market share, eliminate competition, and achieve economies of scale. For example, two competing airlines merging to form a larger, more dominant airline.
2. Vertical consolidation: In this type of consolidation, companies at different stages of the supply chain merge or acquire each other. The goal is to gain control over the entire production process, reduce costs, and improve efficiency. For instance, a car manufacturer acquiring a tire manufacturing company to ensure a steady supply of tires.
3. Conglomerate consolidation: Conglomerate consolidation involves the merger or acquisition of companies operating in unrelated industries. The purpose is to diversify the business portfolio, reduce risk, and take advantage of synergies between different industries. For example, a technology company acquiring a food and beverage company.
4. Market extension consolidation: This type of consolidation occurs when a company expands its market reach by merging or acquiring a competitor operating in a different geographic location. The objective is to enter new markets, gain access to new customers, and increase market share. For instance, a retail chain acquiring a similar chain in a different country to expand its global presence.
2. Vertical consolidation: In this type of consolidation, companies at different stages of the supply chain merge or acquire each other. The goal is to gain control over the entire production process, reduce costs, and improve efficiency. For instance, a car manufacturer acquiring a tire manufacturing company to ensure a steady supply of tires.
3. Conglomerate consolidation: Conglomerate consolidation involves the merger or acquisition of companies operating in unrelated industries. The purpose is to diversify the business portfolio, reduce risk, and take advantage of synergies between different industries. For example, a technology company acquiring a food and beverage company.
4. Market extension consolidation: This type of consolidation occurs when a company expands its market reach by merging or acquiring a competitor operating in a different geographic location. The objective is to enter new markets, gain access to new customers, and increase market share. For instance, a retail chain acquiring a similar chain in a different country to expand its global presence.
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