Vertical Combination When two or more units, performing different sequential activities in the same industry are combined, the combination is called Vertical Combination. In this kind of combination, the work of combined units is not competitive but is complementary to each other, that is, the finished product of one unit is the raw material for […]
A combination is a business structure in which two or more businesses join together to form a new entity. There are different types of combinations, including horizontal combinations, vertical combinations, and conglomerate combinations.
Here are some additional details about combinations:
- Horizontal combinations involve businesses that operate in the same industry. For example, two furniture manufacturers might combine to form a larger furniture company.
- Vertical combinations involve businesses that operate at different stages of the production process. For example, a raw materials supplier might combine with a manufacturer to form a vertically integrated company.
- Conglomerate combinations involve businesses that operate in unrelated industries. For example, a toy company might combine with a software company to form a conglomerate.
Combinations can be used to achieve a number of objectives, such as increasing market share, reducing costs, or expanding into new markets. However, they can also be risky, as they can lead to increased competition and regulatory scrutiny.
Horizontal Combination When two or more units engaged in the same kind of business join or combine under single management, the combination is called Horizontal Combination. The quality of such combined units is that they carry on the same trade before the combination. Such kind of combination is undertaken mostly when too much competition is
Meaning of Industrial Combination When two or more business units join to work together, ending all competition between them, it is called Industrial Combination. In other words, combining various units attaining their objectives economically; keeping in mind the welfare of the people is called Combination. For combining, it is not necessary for both the units