1.6 Business growth

• horizontal takeover


  merge with a company in the same line of work
• advantage of horizontal takeover

  one less competitor in the market
• Backward vertical takeover


  merge with a company which can supply you with goods
• advantage of Backward vertical takeover

  take control over own supply chain to ensure good quality
• Forward vertical takeover


  To takeover / merge with a company which you can sell your goods to
• advantage of Forward vertical takeover

  A guaranteed market for sales.
• Diversification


  To takeover / merge with a company in a completely unrelated industry
• advantage of diversification


  If one market fails then the business has another area to fall back on