Summary of Unit 5 - Vertical Integration for SMEs

After reading this unit, you should be able to distinguish between backwards and forwards vertical integration. You can also refer to some of the advantages and drawbacks of vertical integration. You can identify what are the main aspects when considering doing vertical integration, what are the conditions that can be better addressed through vertical integration. You can point out what to do in order to achieve vertical integration successfully, and what alternatives you have at your disposal. Considering the learning you did, you are able to analyse the situation of your enterprise and make a careful decision about performing vertical integration in your firm.