Case Analysis Of Consolidated Industries

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The cost of the product manufactured in the industry are planned by the strategic managers, they planned according to the present strategy of the company and their rivals in the market. The cost leaders make the low price strategy when they having a huge demand on the product, as they reduce the price the demand of product increased. Then the market value of the product will be raised. The low cost strategy differentiates from the company which have higher price of the product in the market, as the price is reduced to increase the demand of the product. The company which have higher price has a unique product for one set of customers, as they charge higher price than the rivals who has low cost strategy which leads to profitability and good market share of the product. 2. Aside from low-cost strategy, …show more content…

The local market competition effects the fragmented industries. They will not effect the consolidated industries. 2. What opportunities and advantages do consolidated industries offer that fragmented industries do not? The advantages that the consolidated industry has fragmented industry are The cost of starting and maintaining the company is less in consolidated industries than in fragmented industries. As the consolidated industry is huge chain of companies where the production is more and reduces the operational cost. The consolidated industries have good market value of the product, and have profitability of the company. The companies in consolidated industry works to find the new products to lower their costs and increase the revenue and have the economies of scale. As consolidated industries are large number of companies which has more number of partnerships as they have good market value. 3. Describe horizontal and vertical integration. Why do businesses leverage these vehicles for growth, and how can they aid in gaining competitive

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