Reply To: Vertical or horizontal?


Karl Heinz Foertsch

Depends on the competitive position the company is in and in which direction it wants to move. It could make sense to integrate vertically. Disney-Pixar merger can be considered as a vertical merger were both companies benefited. Disney acquired the leading animation studio, which in the past produced movies for Disney. At the same time Pixar benefited from Disney’s vast distribution network for movies. With the merger Pixar could focus its resources on producing outstanding movies rather than spending money and time on developing distribution channels and marketing campaings.

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