Tag: what is vertical and horizontal integration

Businesses constantly look for ways to improve efficiency, reduce costs, and gain greater control over their operations. One strategy that companies use to achieve these goals is vertical integration. Understanding what is vertical integration helps business owners, students, and professionals recognize how organizations manage supply chains and expand their operations. Vertical integration is a business strategy in which a company controls two or more stages of its supply chain, such as raw material production, manufacturing, distribution, or retail. Instead of depending entirely on outside suppliers or distributors, the company brings…