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How does McDonalds use vertical integration to reduce competition and make the business more profitable?

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User Ppcano
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1 Answer

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McDonald’s business is a business that is totally based on vertical integration for reducing completion and getting better profitability. By vertical integration McDonalds actually raises the cattle to produce the initial product and then transport the end product to the various outlets. So McDonald does not have to deal with any middle man and this increases profitability by a huge margin. This kind of model reduces the chance of rat eating rat’s meat like situation. The total profit goes to the McDonald Company.


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User Ugexe
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