Daffodil International University

Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: Shah Alam Kabir Pramanik on April 03, 2017, 04:39:04 PM

Title: The advantages of vertical integration
Post by: Shah Alam Kabir Pramanik 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.