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THE ESSENTIALS OF A GROUP OF COMPANY. Constitutive factors, creation…

- - - - main reason: transaction costs
        
        uncertainty over market trends
        
        frequency of the transaction
        
        resources specificity
      - strategic benefits
        
        Integration economies.
        
        Technology know how
        
        Guarantee of the supply/demand.
        
        Gain bargaining power.
        
        Increasing entry barriers for competitors.
        
        Entry in profitability business.
      - it may occur
        
        backward
        
        forward
      - risks
        
        Amount of the financial resources needed.
        
        Difficulty in being up to suppliers and customers know how.
        
        Reduction of the flexibility in changing partners.
        
        Equilibrium in the production flow.
        
        Increased the operating leverage and exit barriers.
    - - two or more companies that occupy similar levels in the production supply chain
        
        same industry
        
        diversification
    - - economic reasons
        
        Economies of scale
        
        Economies of scope
        
        Productive and bargaining power increase
      - risks
        
        Cost of inputs
        
        Future technological changes
        
        Growing too much
        
        Increase in the productive power of competitors
      - conditions
        
        Increase the productive power according to the growth of the market
        
        The strategy must be pointed out before the reaction of the competitors