Sunday, October 14, 2007

Vertical Development

A key factor in McDonald's
monopolizing its
industry of fast food
has to do with the term,
Vertical Development.
When you devolpoe your
company verticaly you
maintian controll over
every single step when
creating your product.
The McDonalds you know
is the store in which their food is sold.
To be so succesful they need to
do more for them selves though,
they also own everything from the
cows to the paper food is wrapped in.
To the plastics their straws are made of.
In order for a profit to be
made Verticle development it crucial.


You could also develope your company horozonally, which would mean that your company would be developed but not in different areas. If you owned a clothing store, and you decided instead of making your own cloths for cheeper that you would open another store with a different name next to the origional store, you would be developing horozonatly. Large companies are able to thrive because of their abitlty to play teh field and search areas to employ themselves. That is how in america you can create monoplies.

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