CIMA E1 Syllabus D. Shape And Structure Of The Finance Function - Horizontal and vertical structures - Notes 5 / 9
Horizontal and vertical structures
Horizontal integration
It involves developing competitor or complementary activities, for example a TV company moving into film production.
Vertical integration
It occurs when a company expands backwards or forwards within its existing value network and therefore becomes its own supplier or distributor (e.g. Zara is highly vertically integrated)