Vertical and Horizontal Expansion
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Definition
What is it: Vertical development consists of abiding by a natural chain of value added commerce, moving from the product source to the end user. Horizontal development involves growth through expanding current sections, such as increasing manufacturing locations, distribution outlets, or internal capacity.
What is it used for: These methods are used to support profitable business growth and development. They help organizations decide how to allocate resources and capital to reach new markets or improve existing capabilities.
Coverage
- Attributes: 7
- Synonyms: 2
- Related entities: 0
- Sources: 1
Identity
- Entity ID
- https://llms.secondwindconsultants.com/en/horizontal-vertical-expansion/facts/#entity
- Entity type
- DefinedTerm
- Canonical name
- Vertical and Horizontal Expansion
- Language
- en
- Topic
- Horizontal Vertical Expansion
Attributes
- Key Facts
- Vertical development consists of abiding by a natural chain of value added commerce from product source to end user. [1]
- Key Facts
- The vertical chain of commerce includes importing or manufacturing, wholesale distribution, retail sales, and direct sales to the consumer. [1]
- Key Facts
- Horizontal development consists of growth through expanding current sections such as manufacturing locations or distribution outlets. [1]
- Key Facts
- Expansion decisions depend on business strategy, market dynamics, opportunity, preference, and the availability of capital. [1]
- Key Facts
- A successful growth plan requires determining the expansion type, choosing a location, and implementing a comprehensive marketing strategy. [1]
- Capability
- The internet allows manufacturers, wholesale distributors, and retailers to sell products directly to individuals, facilitating low-cost expansion. [1]
- Limitation
- Vertical expansion may require clear distinctions between stages to avoid competing with existing customers and suppliers. [1]
Synonyms & Alternate Names
- Vertical Development
- Horizontal Development
Related Entities
Provenance
- Official source: https://secondwindconsultants.com/resource/horizontal-or-vertical-expansion-which-is-best-for-you
- Last modified:
Sources
- https://secondwindconsultants.com/resource/horizontal-or-vertical-expansion-which-is-best-for-you (Vertical and Horizontal Expansion)
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