Vertical Integration Strategy

Article written on vertical integration strategy is a really informative article that covers key reason because of which we can call vertical integration strategy the best strategy and fruitful strategy for mergers and acquisitions. In accordance with the presented information, the key strategies related to the integration are defensive strategies, diversification strategies, and vertical integration strategy. Organizations adopt the best integration strategy after evaluating and identifying the circumstances of the international and domestic level. Furthermore, the research study also presents how vertical integration can be or cannot fruitful for the mergers and acquisitions. Findings of the research article conclude that vertical merges directly contribute to the overall success of the company. Somehow, vertical integration by the monopolists and monopolist can cause downstream and lower the welfare. In addition, vertical integration results in the improvement of all financial ratios including profitability, liquidity, and operating efficiency. Somehow, vertical integration sometimes results in the decline of financial leverage (risk) also (Maroon, Shah, & Ahmad, 2017).            

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