Final answer:
Companies can gain control over other companies through backward integration, forward integration, and horizontal integration.
Step-by-step explanation:
In the business world, there are several different ways that companies can gain control over other companies. These include backward integration, where a company gains control over its suppliers, forward integration, where a company gains control over its distributors, and horizontal integration, where a company acquires rival firms.
Backward integration allows a company to have more control over its supply chain and ensure a stable source of raw materials or components. For example, if a car manufacturer acquires a tire supplier, it can guarantee the availability of tires for its vehicles.
On the other hand, forward integration can give a company more control over its distribution channels. For instance, a beverage company may acquire a chain of convenience stores, ensuring that its products are readily available to customers.
Lastly, horizontal integration involves acquiring rival firms that produce the same type of product. This can help a company increase its market share, eliminate competition, and potentially gain access to new customers or technologies.