How does transaction cost economics apply to vertical growth

How does transaction cost economics apply to vertical growth

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1.How does transaction cost economics apply to vertical growth? To concentric versus conglomerate diversification?

2.What concepts or assumptions underlie the BCG growth-share matrix? Are these concepts valid? Why or why not?

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Vertical growth can be described as the process where a company analyzes and decides to save its costs by accepting the responsibility of distributing its own products (Markovits, 2014). This may arise mainly because of the challenges the company faces with its suppliers and distributors such as supplying them with less quantity of goods or bringing the goods…

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