Vertical Integration
Content
Definition
Vertical Integration is a strategy where a company expands its business operations into different steps on the same production path.
Usage and Context
Vertical integration means expanding a company’s operations into different steps in the production process.
Frequently asked questions
- What is a vertical integration strategy? A vertical integration strategy involves expanding a company’s operations into different stages of production within the same industry.
- What does vertical integration as a business strategy involve? Vertical integration involves expanding a company`s operations into different stages of the same production path, such as manufacturing and distribution.
- What is a good example of vertical integration? A good example of vertical integration is a car maker buying a tire company to control its supply chain and lessen reliance on outside suppliers.
Benefits
Vertical integration broadens operations across various steps in the production process.
Conclusion
Vertical integration extends a company`s operations across various production stages, improving efficiency.
