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3 Kinds of Market Integration

There are 3 kinds of market integration: 1) Horizontal integration occurs when one institution gains control of others in the same industry. Examples include John Gokongwei selling Hunt's rights and Ayala acquiring Zalora stocks. 2) Vertical integration involves a business controlling activities in the production process. Monterey Meat Shop buys livestock and materials to produce meat products. 3) Conglomerate integration combines unrelated agencies under single management, like Ayala Group operating diverse businesses.

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Maryjoy Tan
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2K views2 pages

3 Kinds of Market Integration

There are 3 kinds of market integration: 1) Horizontal integration occurs when one institution gains control of others in the same industry. Examples include John Gokongwei selling Hunt's rights and Ayala acquiring Zalora stocks. 2) Vertical integration involves a business controlling activities in the production process. Monterey Meat Shop buys livestock and materials to produce meat products. 3) Conglomerate integration combines unrelated agencies under single management, like Ayala Group operating diverse businesses.

Uploaded by

Maryjoy Tan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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3 kinds of Market Integration

1. Horizontal Market
 Short Definition:
a. A type of market integration when an institution gains control of
other institution and applying the same marketing functions. Some
of this institution combines other institution to form a union in
order to reduce their competitor in the market.
 Examples of Horizontal Market Integration in the Philippines and Short
Nature of its business:
a. John Gokongwei sold the rights to manufacture and distribute
Hunt's products to Century Pacific Food's Corp, the maker of
Century Tuna and Corned Beef.
b. The Ayala Group acquired nearly 50% of the Zalora's stocks as they
want to expand more into e-commerce.
c. Land Bank of the Philippines conquered Philippine Postal Savings
Bank and opening it as a lender for overseas Filipino workers.
2. Vertical Market
 Short Definition:
a. This type of market integration when a business performs an
activity throughout the marketing process. They buy everything
they need to produce the ideal product that they want.
 Examples of Horizontal Market Integration in the Philippines and Short
Nature of its business:
a. The Monterey Meat Shop is a meat industry that buys all the tools,
equipment and food to run a meat factory. In terms of running a
meat business you need to have the needs of every livestock you
have in order for you to produce meat products.
3. Conglomerate Market
 Short Definition:
a. This is a combination of agencies that are not directly related
but it can operate under a one management.
 Examples of Horizontal Market Integration in the Philippines and Short
Nature of its business:
a. The Ayala Group is a conglomerate company and they hold many
businesses that can help them secure product, lessen their
competition and can broaden their connection and resources.

References:

For number 1: https://www.slideshare.net/jpsivam/market-integration

https://news.abs-cbn.com/business/05/02/17/5-big-corporate-mergers-and-acquisitions-in-ph-in-past-
year

For number 2: https://www.slideshare.net/jpsivam/market-integration

For number 3: https://www.slideshare.net/jpsivam/market-integration

http://www.philippinesaroundtheworld.com/philippines-top-10-largest-companies/

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