Vertical Integration
Vertical Integration is a strategy where a company expands its business operations into different steps on the same production path.
Benefits
Vertical integration broadens operations across various 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.
Key Takeaway
Vertical integration extends a company`s operations across various production stages, improving efficiency.