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What is vertical consolidation?

Updated: 12/18/2022
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12y ago

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Vertical consolidation is the process by which a company absorbs a distribution center or supplier into its own value stream. This can occur when a company purchases a new supplier or when a company begins to offer the same services as a third-party supplier themselves. This process is also referred to as vertical integration. An example of vertical consolidation is when an oil company purchases gas stations to sell their oil products or when the same oil company conducts exploration for new oil sources.

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Related questions

Name four methods that industrialists may have used to dominate their industry?

oligopoly, monopoly, vertical consolidation, horizontal consolidation


How did methods such as a vertical and horizontal consolidation and fators such as economies of scale help companies dominate their markets?

How did methods such as a vertical and horizontal consolidation and fators such as economies of scale help companies dominate their markets?


What is the term horizontal consolidation?

Horizontal consolidation is when companies try to merge with each other, whereas vertical consolidation is where the business tries to actually take over to benefit themselves!


What is a method by which you gain control of all phases of a products development?

vertical consolidation


Did Andrew Carnige use horizontal or vertical consolidation to gain control of the steel industry?

He used both


Who was and industrialist who made a fortune in the steel industry in the late 1800's through vertical consolidation?

Andrew carnegie


What is the term for horizontal consolidation?

Horizontal and vertical consolidation are ways in which businesses can try to expand. Vertical consolidation involves buying firms up or down the supply chain. For example - a firm might buy companies that provide it with the materials it needs to produce the goods. It is buying other companies that do not compete with it, but are part of making or selling the product it made originally.


How did methods such vertical and horizontal consolidation and factors such as economies of scale help companies dominate their markets?

Vertical consolidation and factors such as economies of scale will help companies dominate their markets because more people will buy what a big business sells because it will cost less. Poor people will be able to buy the product because it will be cheap like a dollar instead of going to a small business's were it would cost twice as much.


How do you abbreviate the word 'consolidation'?

Consolidation


How was Rockefeller a captain of the industry?

Using horizontal consolidation, Rockefeller took hold of the entire petroleum refining process. He ruled only that part of the process, and revolutionized it. Someone like Andrew Carnegie used vertical consolidation, in which he controlled every aspect of the steel business, from mining to manufacturing to transporting to selling.


What are some good consolidation software?

Some of best consolidation software on the market are, Longview 7 Consolidation software, EPM Analytics, and Global ERP Financial Consolidation Software.


What tagalog term for consolidation?

Tagalog translation of consolidation: pagsamahin