This picture shows a Matchbox-truck with a Mc- Donald's advertisement on it. Two companies that belong to completely different segments of the market work together. It is called external vertical integration. Matchbox and McDonald's have a joint partnership. McDonald's paid Matchbox to put a McDonald's commercial on the toy-truck so that children that play with it see the conversant yellow M and the happy clown from McDonald's. It is more likely that the kids playing with this truck will eat at McDonald's than if the truck did not have the M and Ronald McDonald on it. That way both- Matchbox and McDonald's have a good chance in making more profit of a product than by selling it "on their own".
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