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Sorry- accidentally put the definition of
horizontal drilling instead of integration- here's the real one, combined with
vertical integration:
Vertical integration means that the manufacturer might, for instance, to buy a supplier (backward integration) or to buy a retailer (forward integration). The oil industry is vertically integrated since the major oil companies are involved in oil exploration and refining the oil; and the gas stations (retailers) that sell the oil are franchisees of the oil companies. Thus, the oil companies have a hand in the entire supply chain. Alternatively, one manufacturer (or retailer) might buy out another. If the government allows this (sometimes they may not allow this if it hurts competition or tends to create a monopoly), it is called horizontal integration. Manufacturer => Manufacturer Or Retailer => Retailer This was utilized a great deal by Rockefeller-By 1879 his companies controlled
more than 90% of the U.S. oil refining business, making a
monopoly.
Shelley
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