Question

Pertamina is an Indonesian Oil & Gas corporation that wishes to enter India & is competing against Reliance Industries Limited. a. As a consultant you are required to recommend whether backward integration or forward integration is a superior strategy to compete against RIL in India? Which one of the alternatives would you choose to your client & why? Justify with reasons.

Answer 1

Answer:

a to the power x-y

a to the power y-z

a to the power z-x

ok

Answer 2

Forward integration is a superior strategy to compete against RIL in India

Explanation:

• Pertamina is an Indonesian Oil & Gas corporation which can enter India and compete against their competitor, Reliance Industries Limited through Forward Integration. Pertamina can grow their organisation structure by manufacturing many products and improve market areas.
• Vertical integration is a good strategy because there is increase in production and sales revenue in the industry.
• Forward vertical integration  is necessary for Pertamina to succeed in India against RL by diversifying their market so there will be wide distribution channel.

To know more:

Which one of the alternatives would you choose to your client & why? Justify with reasons.

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