When an Cannapreneur wants to grow their cannabis company, they can either choose to develop their own business or acquire or merge with a company that does the same thing to create a more vigorous company.
Horizontal integration can grow a cannabis company by adding another flourishing business without the prohibitive cost of starting a business from the beginning. Large-scale acquisitions and mergers can reduce operational costs over time.
With vertical integration, ETI controls more than one aspect of their supply chain. For example, a vertically-integrated business could own everything from a cultivation facility to a retail location where they can sell their products.
Several states have experimented with regulatory models that require, permit, or prohibit vertical integration. While prohibition is meant to reduce use and discourage negative business practices, states are warming up to vertical integration.
Emerald Thumb Industries and Consolidation
In terms of horizontal integration, ETI can focus on growth by acquiring. As Emerald Thumb Industries begins to expand, we will end up buying our competitor to increase revenue and become market leaders.
Vertical integration and horizontal integration can limit the number of people that can enter the cannabis market. When farmers attempt to compete by getting retailer licenses, they may lack expertise in that area and fail.
Consolidation, however, can incentivize businesses to create high-quality products since they have to control from seed-to-sale. Thus though horizontal and vertical integration Emerald Industries is allowed to accelerate their growth at a major advantage above those not grasping the concept.
Emerald Thumb's business model:
Vertical Integration = Legal Cannabis Monopoly
Emerald Thumb feels its good business to be very socially aware and play and play a big boys roll in making those needed social changes. It was a commodity that once was used to destroy black men's lives. Now its being used to make men who once oppose marijuana very rich. The very men who once said it was illegal to touch.
Plain and simple there has to be at least one company who fully understands that, and figures out a way to fix it - while making money. Marijuana and hemp are the new global commodities big enough to thrust the cannabis industry forward to do that. We plan on being that company that figures how to create a mean, green,cannabis machine that's
ready and able to steam roll all possible obstacles and evasive predatorial competition. Yet at the same time create happier, cleaner, and financially in charge communities.
This potential trillion dollar industry, and this future billion dollar company can do all of this.