9. NOTE: Answer the following questions in separate pages. Mark each question number on every page. Vertical and horizontal integrations are two different integration strategies to expand the business. Both strategies have advantages and risks and each company chooses one of them to achieve the best growth for the company and ensure its profitability. Regardless of the strategy considered, the company must first know which part of the product has a maximum impact on profits. Vertical integration is a strategy forward or backward towards the supply chain. The company buys the supplier toward customers, which is forward vertical integration for example, a manufacturer buys a retailer. Or the company buys the supplier toward raw material, which is backward vertical Integration for instance, a manufacturer buys a supplier of the raw material company needed for the final product. Vertical integration brings part of the production pronse in house instead of outsourcing Process innovations involve the activities and operations that produce an enterprise's primary offerings Innovating here requires a dramatic change from "business as usual" that enables the company to use unique capabilities, function efficiently, adapt quickly, and build market leading margins. Process Innovations often form the core competency of an enterprise, and may include patented or proprietary approaches that yield advantage for years or even decades. Ideally, they are the special sauce you use that competitors simply can't replicate Tesla - Vertically integrated supply chain: Tesla's electric cars require huge pack of EV batteries, made of thousands of lithium ion cell Until recently, the lack of demand for electric vehicles meant that companies had not invested in battery technology development, resulting in prices remaining high and making the cost of cats prohibitively more expensive than their ganolie counterparts, Veste vested in a massive giga factory to produce the newest battery packs themselves and the economies of scale, as well as not paying marupu to manufacturers are estimated to save them 30% of the cost of the batteries a. Tesla's strategy would enhance the scope of EV in the near future. Comment. 05 Marks b. Articulate the process innovation with reference to Testa, Os Marks Assess the importance of incremental innovation in emerging markets with an example 04 Marks