d) Horizontal and Vertical Takeover: Depending on the investors’ objective, market takeover can be horizontal or vertical. Horizontal takeover involves acquiring companies operating in the same industry as the investors. Vertical takeover means acquiring companies at different stages of the production cycle, from suppliers to retailers.
Business investors’ influence on the market:
Market takeovers by business investors can have a significant impact on market structure and dynamics. They can form monopoly positions, determine prices, and control access to resources and technology. With their financial capacity, experience and expertise, business investors can create competitive advantages and bring significant changes in the industry.
Business investors play an important role in absorbing the market and determining its development. Various strategies such as mergers and acquisitions, stock purchases, and venture capital investments allow investors to manage companies and build a strong position in the market. It is also important to note that these actions of business investors can have a significant impact on the structure and competition in the market, and therefore their activities should be regulated and transparent to ensure a fair environment for all market participants.
