Market foreclosure

Market foreclosure or vertical foreclosure, is the production limitation put on a producing organisation if either it is denied access to a <a href="/facts/Vendor_(supply_chain)/NayQNfhq">supplier</a> (upstream foreclosure), or it is denied access to a downstream buyer (downstream foreclosure). A supplier or intermediary in a <a href="/facts/Supply_chain/cApUyx1h">supply chain</a> could acquire this form of <a href="/facts/Market_power/oyYb7b3L">market power</a> against competitors through means of <a href="/facts/Mergers_and_acquisitions/YfczSf3M">mergers and acquisitions</a>. This amalgamation of suppliers and customers demonstrates <a href="/facts/Vertical_integration/SQa0Sn6t">vertical integration</a> along a <a href="/facts/Value_chain/nIfCnfcA">value chain</a> with various strategic and efficiency benefits including elimination of successive <a href="/facts/Monopoly_markup/PUBFnYxe">monopoly markups</a> and lowering <a href="/facts/Transaction_cost/APnk8KdX">transaction costs</a>.

Market foreclosure open-in-new

Market foreclosure