Business IntegrationIn this post, Nuria Fuente, Professor of the International Master's Degree in Business Administration and Management at Bureau Veritas Training, talks to us about a highly topical issue, namely business integration.
The current situation of financial instability and economic uncertainty means that we are living in a time of constant change in which companies experience organizational changes, mergers, acquisitions, etc.
In the business world, in recent years, we have seen how mergers and acquisitions have become a commercial integration mechanism to move forward , face challenges, manage investment risks and provide solutions to economic and business viability problems.
Therefore, it is important to keep in mind the importance of business integration as an organizational strategy . The purpose of this integration is to survive in a global market and achieve objectives that a cryptocurrency data company cannot achieve on its own, such as achieving competitive advantages that a company operating in isolation could not obtain.
A business integration is any mechanism that is used to acquire control of one or more companies or to acquire control of a company in another existing one .
The term "integration" means the combination of one or more activities in which competition ceases between the companies carrying out the integration , regardless of the legal form of the operation.
There are two types of integration: horizontal integration, which is carried out between companies that participate in the same link in the value chain, and vertical integration, which is carried out between companies located in different production and/or distribution links but in the same value chain.
Business integration offers many advantages : it creates value, transfers knowledge, experience and technology. Companies contribute their know-how , experience and resources to the new organisation, and share challenges, risks and benefits.
Business integrations improve the credibility of organizations, as well as their reputation and image , allow access to a greater number of technical, human and financial resources, expand knowledge about the market and customers, facilitate product innovation, improve distribution channels and access to new markets.
In this way, companies can accelerate their learning processes, achieve economies of scale and concentrate on the areas where they have the greatest competitive advantage. In the global economy, it is not individual companies that compete, but networks or chains of companies that interact to achieve greater growth .
Some examples that have been formed in areas such as savings banks, banks, are the case of Banco Santander ( Santander Group that has integrated the entities of Banesto and Banif ) or in the world of airlines the merger between Iberia and British Airways .
The aim is to take advantage of market synergies, seek profitability, undertake larger projects, be more visible and viable, and achieve a more competitive position in the market .