Answer to Question #276032 in Management for Mafuzul Priyo

Question

What possible Backward Vertical Integration, Forward Vertical Integration, and Horizontal Integration can “Pathao” undertake in their operations for better Growth in the Bangladesh market? (Explain the three factors taking any real or hypothetical situations and then explaining the factors with logic) ?

Answer 1

Pathao offers a delivery service for many e-commerce companies by riding food and couriers to consumers. Pathao can use a backward vertical integration strategy to develop its market by owning companies at the initial stages of the production process. For example, buying a brewery firm and do supplies to consumers direct from their farm. Pathao can also utilize forward vertical integration by controlling supply chain activities in the companies such as the direct purchase and supply of the company products. For example in the hotel business, the pathao company can be in charge of supplying the hotel with fool staff and other equipment for the hotel to prepare food, and then pathao distribute the hotel ready to eat food direct to consumers. Furthermore, pathao can use a horizontal integration strategy by incorporating two or more companies with similar products. For example, pathao can combine two hotels that cook similar food.