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When a bicycle company and a manufacturer of inner tubes merge.

The one company is different from the other; however it's product is part of the other. Depending on their relative size, a rubber company could also buy the bicycle company as an end user of their products.

Another one you might like: a mattress manufacturer buys companies that make all the parts for the mattresses, a trucking company, a chain of furniture stores and a bank. Now they can make the raw materials, turn them into mattresses, ship them to their own stores and loan people money to buy them. In reality the government would break this up, but that's a vertical merger.

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12y ago

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Related Questions

Is Apple and Ipad an example of vertical merger?

Yes.. Because they both are in the same field. As per the defenitions the copanies in the same field join together is called vertical merger.


What is a real life example of a vertical merger?

A real life example of a vertical merger would be the merger of DoubleClick (a web advertising information company) with Google (the largest web search company). However, this could be seen as just an acquisition (Google paid shareholders $3.1 billion USD).


What is a vertical merger?

A Vertical Merger is a company merger that involves the union of a customer with a vendor. The two companies involved in the merger produce different but complimentary products. The vertical merger can also take place as a means of combining assets to capture a sector of the market that either company could manage on their own.


What are the disadvantages of vertical merger?

Firstly, there are no disadvantages of vertical merger because I don't know what is that because there's no such thing! TROLL!


What are disadvantages of vertical merger?

Firstly, there are no disadvantages of vertical merger because I don't know what is that because there's no such thing! TROLL!


Real life example of a vertical merger?

Turner Corperation. Merging CNN, TBS, and other stations. TURNER.


What are the three types of business mergers?

Three types of mergers are: * Horizontal Merger * Vertical Merger * Conglormarate Merger


Example for vertical merger?

the combination of two or more firms involved in different stages of producing the same good or service


What is the definition of vertical merger?

Vertical merger is between two companies that is producing different goods. This happens when two different firms are on different levels.


A merger of corporations involved in different steps of manufacturing or marketing is known as a?

Vertical Merger


What is a merger?

A Vertical Merger is a company merger that involves the union of a customer with a vendor. The two companies involved in the merger produce different but complimentary products. The vertical merger can also take place as a means of combining assets to capture a sector of the market that either company could manage on their own.


How do conglomerates and vertical mergers differ frim horizontal mergers?

Conglomerate is a merger between firms that are involved in totally unrelated business activities. A vertical merger is a merger between firms that exist in the same supply chain, while a horizontal merger is a merger between firms in the same industry.