1.5 - Growth and Evolution (Types of Integration)

Tesla acquires SolarCity, a solar energy company, to expand into renewable energy and create a comprehensive energy ecosystem.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Amazon purchases Whole Foods to enter the physical retail grocery market and control the distribution of its own products.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Facebook (Meta) acquires Instagram, a social media platform that directly competes in the same industry.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Apple buys Dialog Semiconductor, which manufactures power management chips used in iPhones, to secure a key component of its supply chain.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Coca-Cola purchases Costa Coffee to diversify into the coffee retail market, a completely different industry from beverages.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Disney acquires Pixar, a competing film production company, to expand its animated film portfolio.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

IKEA buys forests in Romania to ensure the supply of sustainable timber for its furniture production.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Google acquires Motorola Mobility to produce its own smartphones and have more control over hardware production.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Walmart acquires Jet.com, an e-commerce platform, to strengthen its online retail presence and better compete with Amazon.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Netflix starts producing its own original content, bypassing traditional film studios and becoming both a producer and distributor of entertainment.

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration