Horizontal And Vertical Integration For A Profitable Business Model

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Horizontal & Vertical Integration to Compete Porter’s five forces provide a methodology to evaluate the external markets. Its consideration of substitutes, threats and power of buyer and supplier assists with the development of an integration strategy. A thorough analysis can isolate attractive opportunities in support of building a profitable business model. These strategies can leverage vertical and/or horizontal integration of new business entities. These entities are designed to help with growing market share, increasing efficiencies and/or reducing costs. Online business using the internet has experienced significant growth over the last two decades. According to the Internet World Stats (2014) the number of worldwide internet…show more content…
Integrating e-commerce within the marketing channels can provide an efficient method to run and conduct business. Gaining operational efficiencies can provide a competitive advantage. These advantages can manifest themselves in the form of growing market share, improved customer experiences and cost control. This channel of e-commerce can envelope the entire value chain network. Leveraging this capability, across the value network, supports both vertically and horizontally integrated businesses. Integrating e-commerce has become the new norm to conduct business. This analysis will compare and contrast how a vertically integrated company such as Fresenius Medical Care (FMC) and a horizontally integrated company such as Integra LifeSciences (ILS) have integrated e-commerce to support effective value chain strategies. It will discuss similarities and differences, on how to best adopt, an integrated e-commerce approach for both a vertically and horizontally run business. This analysis will use examples from FMC and ILS to outline how e-commerce has provided a competitive advantage in marketing their products and services. The analysis will conclude with recommendations for both companies to enhance their future campaigns. Assessment Change is constantly occurring. Businesses try to stay ahead of the change curve through strategic planning. This planning sets the tone through goals and objectives. Leveraging new technology can help with meeting those

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