... Vertical (Backwards and Forwards): This is where a firm integrates with a firm that is in either the previous or next (respectively) stage of the production process. E.g. Backwards Merging is where a firm in the secondary sector buys one in the primary. * Horizontal: This is where a firm buys another firm in the same production process and industry, e.g. secondary producing product A buys secondary producing product A too. * Lateral: Is very similar to horizontal merging. It is where a firm buys another firm in the same production process, but the products are related and not the same, e.g. Cadbury's merging with Schweppes. * Conglomerate: This is where a firm buys another that it is usually in the same production process but the goods are unrelated. This is to achieve diversification and spread risk. E.g. Unilever owns such companies as Calvin Klein, Birds Eye, Flora, Domestos, Cif, Dove, Walls, ...

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