Try to explain the integration strategy. (5) Short questions

A: The integration strategy refers to a strategy that enterprises make full use of their own advantages in products, technology and market, and make it develop in depth and breadth according to the direction of logistics. After the intensive growth stage, the market share of enterprises is increasing, and the strength of enterprises is getting stronger and stronger. At this time, it is necessary to consider how the enterprise expands and in which direction, and the integrated development comes into being. Integration strategy is a very important growth strategy for enterprises, which is conducive to deepening professional division of labor and cooperation, improving the depth of resource utilization and comprehensive utilization efficiency.

The main types of integration strategy are horizontal integration and vertical integration. Horizontal integration, also known as horizontal integration, refers to the company's growth by merging other organizations in the same industry, that is, merging the businesses of competitors. Vertical integration can be divided into forward integration and backward integration. Backward integration means that an organization tries to control its input and thus has its own suppliers; Forward integration means that an organization has its own distributors by controlling production.

(5) Short questions