What is vertical intregation?

Answer 1

Vertical integration is a business strategy where a company expands its operations by acquiring or merging with other companies at different stages of the production process. This can involve either backward integration, where a company takes control of supply chains and raw material sources, or forward integration, where it takes control of distribution and retail operations. The goal is often to increase efficiency, reduce costs, and enhance market control. By doing so, companies can improve their competitive advantage and ensure better quality and supply consistency.