Describe how both horizontal & vertical intergration helps an organisation like irn bru become larger & more profitable?

If Irn Bru take over Coca-Cola they can gain all profits from Coca-Cola and their market share. They become involved with more people,coca colas contacts and customers which means they have less liability.

They can also broaden their customer network. For vertical intergration, if Irn Bru buy unto their bottle suppliers they no longer need to pay for transport costs which maximisises profitablitity. They benefit by making bottles for other companies which increases their profit.

If they bought out a small chain store they could sell their products cheaper than rivals, making their product more appealing.

HORIZONTAL: If Irn Bru had to merge with a company on the same level of production for example another fizzy drinks company- Coca Cola, they would become a stronger company with a wider target market. Stronger work force is created.

VERTICAL:By not paying transport expenses, this increases the profit for the company