Ranjeet Reddy Paladugu holds master’s degrees in both engineering and business. He has worked as a financial director and assistant vice president for one of the largest beauty brands in the world. Today, as the founder and CEO of an investment firm, Ranjeet Reddy Paladugu frequently consults on integration practices for companies in various industries.
Two kinds of integration in business are horizontal integration and vertical integration. Horizontal integration happens when an organization acquires holdings in the same industry, thereby increasing its market share and market potential. Vertical integration happens when a company acquires another company in the same industry but somewhere else in the production process. For example, this could mean acquiring a supplier to reduce expenses or acquiring a distributor to improve distribution scope and range. Vertical integration is a vital strategy for many companies. It can reduce prices directly, reduce delivery times, or improve customer engagement. Applying horizontal integration or vertical integration correctly is a challenge and should only happen after a thorough analysis. Comments are closed.
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AuthorRanjeet Reddy Paladugu - Investor and Former L'Oreal Executive. Archives
April 2020
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