Which of the following is typically the strategic impetus for horizontal integra

Question

Which of the following is typically the strategic impetus for horizontal integration?

Being able to control the wholesale/retail portion of the industry value chain

Broadening the company's product line or geographical scope

Gaining better access to end users and better market visibility

Broadening the company's market

Allowing the firm access to greater economies of scope

Being able to control the wholesale/retail portion of the industry value chain

Broadening the company's product line or geographical scope

Gaining better access to end users and better market visibility

Broadening the company's market

Allowing the firm access to greater economies of scope

Explanation / Answer

Answer:-

4)Broadening the company's market

When a firm uses the horizontal integration, its main goal is to ensure that it broadens its market share and allow the clients to access its products in the market. It is important for every company to access the larger market by expanding its operations and serve the larger population in the market. This is done by increasing the production and serving many different consumers in the market. This will enable the company to win many customers and thus eliminate part of the competition in the market.

Explanation:-

Whenever there is a high level of competition in the marker, then there is the need for a company to ensure that its products can reach to vast majority in the market. However, the strategic approach is broadening the product lines thus increasing the market access. When the company accesses a larger market, then it is able to serve many customers. In the long run, it will make more profits.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.