Article main Objective

This article focuses on Personal Development and Personal Growth to achieve Success. One famous economist in his text book writing about Specialization of Trade and Labor, referred to “Vertical Integration” and “Horizontal integration” in order to achieve economies of scale pertaining to production.

His objective was to show how a country or an industry can greatly benefit from comparative advantage by producing more goods or services than another country or another industry. He also focuses on Specialization and Vertical Integration, the main factors and dynamic driving force to achieve Comparative Advantage, the objective was to produce the same amount of products, earn more money, and use less resources.    

He states that when people combined their effort in a collaborative, corporate, and cooperative manner to complete a task, more production will be achieved. As a result he has chosen vertical integration to explain the concept as the best production model.

If a country can produce one unit in exchange for 2 units from another country at the same cost, it means that the country enjoys comparative advantage over the other country.

Horizontal Integration

Horizontal integration is when people are engaged in the same stages of production.

When people are engaged in the same stages of production, it will take each person almost 8 times the time to complete a task.

He referred to the pin making industryto clearly explain the disadvantages of horizontal integration as against vertical integration.


If one person was to make a pin, it would take him almost one year to produce that pin because he would have to perform and complete the following task:

1. Obtain the wire 2. Straighten the wire. 3. Cut the wire 4. Sharpen the point. 5. Make the bend. 6 Make the Pin Head. 7. Attached the head. 8. Dip the pin in the silver liquid for coating.

In essence, it would take when one person is involved in all the stages of production making a pin, it will take that person approximately one year to make a pin. That would be completely uneconomical to any country or industry.

Vertical Integration

Vertical integration is when people are engaged in different stages of production.

Conversely, when people are engaged in different stages of production making a Pin, the following tasks are employed which speed up production and therefore economies of scale is achieved.

1. One person obtains the wire, 2. One person straightens the wire, 3. One person cuts the wire. 4. One person sharpens the wire, 5. One person makes the Bend, 6. One person makes the head. 7. One person attaches the heads. 8. One Person dips the Pin in the silver liquid for coating.

Advantages of Specialization by implementing Vertical Integrating into your personal Profile

The lesson to learn here is, when a person specializes in a process by doing the same thing over and over, that person becomes very dexterous in performing that same task over and over without making any mistake. He can perform that task flawlessly with his eyes closed.  In order to achieve this outcome, you have to develop yourself such as:  sharpening your skill, build self awareness, commitment, consistency, and self confidence. These factors will allow you to function effectively with an aim to achieve success.

Therefore, when you specialize by Personally Develop your potential, you will be able to increase your out-put by producing more at a phenomenal rate as a result of your entrepreneurial Mindset.

The Essence of Success

In addition, I might add, you must implement these variables in a “Collaborative Combined Corporate Cooperative Manner” and grasp the concept and objective which will augment the process and catapult you to unknown heights to your success.

Each factor must be integrated and play its part to contribute to the cause. The objective here again is each factor must be involved 100%.

Pragmatically speaking, having a home based business gives you the freedom to grow your business on your own terms without any restriction from anyone. It is therefore of paramount importance, to continue building yourself and true potential.

People need to move from one level to a higher level in order to achieve success by contributing to what is called a “Shared Vision.” simply states one aim, one objective, one goal, in order to embrace the concept.

I am an internet marketer and Personal Development & Personal Growth Coach helping business entrepreneurs to to create the solid foundstion that is needed to assist them to sustain their long term potential that will enable them to be successful.
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