The advantages of vertical integration

Author Topic: The advantages of vertical integration  (Read 357 times)

Offline Shah Alam Kabir Pramanik

  • Hero Member
  • *****
  • Posts: 542
  • Test
    • View Profile
The advantages of vertical integration
« on: April 03, 2017, 04:39:04 PM »
The advantages of vertical integration are as follows:

(i) It reduces the dependence on other enterprises in the industry and helps in achieving
self-sufficiency.
(ii) It eliminates the intermediate profits and thus reduces the cost of production.
(iii)There is steady production as a result of regular supply of raw materials and regular
sales.
(iv) Products of higher quality can be obtained because of the control be achieved.
(v) Economies in storage, transport and handling of materials may be achieved.