Advantages Of Vertical Integration

The vertical integration is arrangement that tends to keep the supply chain of a company owned by the same company
The below integrations are some strategies that the transport authority are trying to pursue:
Forward Integration since transportation is classified as a service, the gain ownership over distributors or retailers is not valid.
Backward integration its main purpose is to seek ownership of a firm’s suppliers - aiming to deal directly with suppliers in order to reduce cost - as previously highlighted the transportation in both Dubai and Singapore are owned by the government entity. While Dubai were doing their transport system they tried to duplicate Singapore’s transport system by directly using the same contractors which are Mitsubishi