Vertical and Horizontal Integration 

Amazon Logo PNG. 17 Oct. 2022.

February 23, 2023

Both vertical and horizontal integrations are largely involved with different media conglomerates. Vertical integration is the business arrangement in which a company controls different stages along the supply chain. An example of this would be 20th Century Fox and how they not only own studios in Hollywood, but also cinemas, Tv channels, and DVD rental shops. Horizontal integration though is a business strategy in which one company grows its operations at the same level in an industry. An example of this would be the acquisition of Instagram by Facebook in 2012 for $1 billion. Both companies operated in the same industry and shared similar photo sharing services. An example of both of these can be found with the media conglomerate Amazon. Amazon has ventured into many different markets both geographically and in its product ranges. Not only has Amazon used horizontal integration, but especially vertical integration. Amazon customers are essentially the product, and Amazon sells them to its vendors and competitors. While many other companies have also used this method of business, Amazon became a master and  brought it both up to date and scale. When inefficiencies are spotted in the value chain, Amazon is always up to date in addressing them. This shows that the company's warehouses are efficient and increasingly updated. While Apple has historically maintained high levels of vertical integration, Amazon has by far outcompeted other companies at this scale. Similarly, Tesla is vertically integrated to a high degree, however its product range is small. Amazon has embraced this integration, and since become a multibillion-dollar company.