Firms can gain greater control over prices in a market in two major ways. The first is
called horizontal integration; a firm can take over its competitors until it controls
most of the market.
The other method is called vertical integration; a firm takes over
its suppliers of resources, and/or it takes over the distributors of its product. If you can
dominate the source of raw materials, you can deny your competitors these resources,
effectively ''closing them out''. If you dominate distribution, by buying many of the
retail firms that sell your production, you can refuse to stock the goods manufactured
by your competitors. Consumers will be denied choice; a vital part of an efficient market.
Governments have increasingly intervened in markets because of the growing complexity of
these markets. Firms must ensure safe working practices in the work place; and they must
also ensure product safety.