Vertical and horizontal integration strategy Assignment

Vertical and horizontal integration strategy - Assignment Examplet the end of this integration is the factory plant at River Rouge, Michigan where completely these parts be assembled to become an automobile that will be later distributed in the market and sold. For a time, this strategy became very effective and contributed to Fords success.This strategy of vertical integration however in conclusion became obsolete as supply range of a function became complex and competition became stiffer. The introduction of new supply chain and inventory control such as Toyotas Just-in-Time rendered vertical integration out of fashion. The recent recessions too exposed the vulnerability of vertical integration to economic and cyclical downturns.Thus, the strategy evolved to horizontal integration which is more than appropriate for its global market. Horizontal integration as a strategy involves the acquisition of the production whose products are the same either complementary or competitiv e (www.theeconomist.com, 2009). The classic example of this strategy is buying competitors who denounce the same product. In the case of Ford this is the acquisition of Lincoln, Mercury, Mazda, Jaguar, Land rover, Volvo and Aston Martin which was sold as an option of the keep companys