Q:

What is diagonal integration?

A:

Quick Answer

Oxford Reference defines diagonal integration as strategic acquisitions, alliances and information partnerships between companies. The purpose of diagonal integration is to improve access to consumers and achieve economies of scale. These partnerships are characterized by tightly-related, consumer-oriented services.

 Know More

Full Answer

The main goal in diagonal integration is to take advantage of possible synergies between companies, thereby increasing profitability and productivity. Companies partnering up via a diagonal integration strategy are typically from different but complementary industries. An example of this strategy is seen with travel agents who offer travel insurance, car rentals, travel planning, ticketing, add-on excursions and other services from business partners.

Learn more about Business Resources

Related Questions

  • Q:

    Why do firms undertake mergers and acquisitions?

    A:

    Firms undertake mergers and acquisitions to create larger companies, maximize shareholder value and strengthen the financial position of the company, according to Investopedia. These deals also bolster the purchasing power of the acquiring company.

    Full Answer >
    Filed Under:
  • Q:

    How do I report a company to the Better Business Bureau?

    A:

    The Better Business Bureau states that consumers can report companies through the bureau's online complaint system. Consumers submit their claims through the Better Business Bureau website, and the complaint is then forwarded to the business in question within two business days.

    Full Answer >
    Filed Under:
  • Q:

    Where can you get a school supply catalog?

    A:

    Two companies that offer school supply catalogs through the mail are Discount School Supply and Geddes. To receive a catalog, visit their websites and provide a mailing address. Customers also may purchase school products directly from the websites.

    Full Answer >
    Filed Under:
  • Q:

    What is the importance of entrepreneurship?

    A:

    Entrepreneurship is important because it helps to drive the economy, it allows people to bring creativity into the marketplace, it creates companies with the potential to hire millions of people and it brings new products and services to market. In addition, impact entrepreneurship, in which businesspeople pay attention to the social impact of their products and investments, aims to improve society and the environment.

    Full Answer >
    Filed Under:

Explore