Description
For this final SLP, imagine that your business has become successful and you are now considering expanding the scope of your company. Carefully review all of the required background materials, and then write a three-page paper answering the following questions. Make sure to cite at least one of the required readings for each of your answers:
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Running head: ECONOMICS OF ORGANIZATION AND STRATEGY
Economics of Organization and Strategy
Name of the student
Institution
Name of the professor
Date of submission
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ECONOMICS OF ORGANIZATION AND STRATEGY
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If I were to engage in horizontal integration, the direct competitor that I would acquire is the Asics
Company. Reason being, in horizontal integration the business being acquired is the one that
operates at the same level of value chain in a similar or different industry (Stock & Seliger, 2016).
In this regard, since my business operates at prices ranging from 250 to 450 to 600 for the attire
and equipment respectively, this implies that my company operates at the same level of value chain
with Asics Company which operates at prices ranging from 270-320 and 500-550 for attire and
equipment respectively.
Horizontal strategy can increase manpower and create economies of scale over suppliers and
distributers because it is a competitive strategy (Stock & Seliger, 2016). In addition, it enables
businesses to enter new markets and expand their markets because it increases product
differen...