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The idea of vertical integration was introduced by Andrew Carnegie.
Virtual Integration is to have control on the departments or businesses in the chain without owning them.where, Vertical Integration is like owning the departments or businesses in the chain.
Vertical integration and horizontal integration :D
Vertical integration is the merging of companies at different stages of production that aide in making one product. For example, if you wanted to use vertical integration to make a bottle of side, you would buy the company that made the glass for the bottles, the company that makes the bottle caps, the company that makes the labels ect. Carnegie and Rockefeller used this with their respective companies which were steel production and oil
vertical
backward integration is a form of vertical integration in which firm's control of its inputs or supplies. forward integration is a form of vertical integration in which firm's control of its distribution.
me
The idea of vertical integration was introduced by Andrew Carnegie.
Virtual Integration is to have control on the departments or businesses in the chain without owning them.where, Vertical Integration is like owning the departments or businesses in the chain.
A vertical mill is the same as an vertical integration mill. It is built vertical, not horizontal.
A company may buy out it's supplier in a form of vertical integration.
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Vertical Integration is owning a section of a business and horizontal integration is owning all businesses in a certain field.
An advantage of backwards vertical integration would be that the profit of the supplier is absorbed by the expanded business.
Forward integration is when a business integrates with a firm it sells to.
Vertical Integration is a firm from business that deals with buying a supplier or a buyer of a firms products. For example if a firm with an oil refinery bought an oilfield, it would be upstream vertical integration - they bought a supplier. If that same firm bought a gas station it would be downstream vertical integration. Buying an unrelated firm is diversification.