What does vertical integration mean?

Definitions for vertical integration
ver·ti·cal in·te·gra·tion

This dictionary definitions page includes all the possible meanings, example usage and translations of the word vertical integration.

Princeton's WordNet

  1. vertical integration, vertical combinationnoun

    absorption into a single firm of several firms involved in all aspects of a product's manufacture from raw materials to distribution

Wiktionary

  1. vertical integrationnoun

    The integrating of successive stages in the production and marketing process under the ownership or control of a single management organization.

Wikipedia

  1. Vertical integration

    In microeconomics and management, vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. It is contrasted with horizontal integration, wherein a company produces several items that are related to one another. Vertical integration has also described management styles that bring large portions of the supply chain not only under a common ownership but also into one corporation (as in the 1920s when the Ford River Rouge Complex began making much of its own steel rather than buying it from suppliers). Vertical integration and expansion is desired because it secures supplies needed by the firm to produce its product and the market needed to sell the product. Vertical integration and expansion can become undesirable when its actions become anti-competitive and impede free competition in an open marketplace. Vertical integration is one method of avoiding the hold-up problem. A monopoly produced through vertical integration is called a vertical monopoly.

ChatGPT

  1. vertical integration

    Vertical integration is a business strategy where a company acquires or creates operations within its own supply chain, from production to distribution, in order to control costs, increase efficiency, or improve reliability. This approach can cover various stages including raw materials acquisition, manufacturing, marketing, retail, and post-sales services.

Wikidata

  1. Vertical integration

    In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to satisfy a common need. It is contrasted with horizontal integration. Vertical integration has also described management styles that bring large portions of the supply chain not only under a common ownership, but also into one corporation. Vertical integration is one method of avoiding the hold-up problem. A monopoly produced through vertical integration is called a vertical monopoly. Nineteenth-century steel tycoon Andrew Carnegie's example in the use of vertical integration led others to use the system to promote financial growth and efficiency in their businesses.

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Numerology

  1. Chaldean Numerology

    The numerical value of vertical integration in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of vertical integration in Pythagorean Numerology is: 6

Examples of vertical integration in a Sentence

  1. Elizabeth Warren:

    Mergers mean that farmers have fewer and fewer choices for buying and selling, while vertical integration has meant that big agribusinesses face less competition throughout the chain and thus capture more and more of the profits.

  2. Jack Cheng:

    We're no longer talking about the merger of the big guys. I think we should have the vertical integration, with the cloud, the system and the car. All together, from China — we can do Audi China better.

  3. Dwayne Winseck:

    What sets Canada out as an outlier is the extent of vertical integration, the companies that own the pipes also own the content providers whose messages are flowing over those pipes.

  4. Elizabeth Warren:

    Bad decisions in Washington have consistently favored the interests of multinational corporations and big business lobbyists over the interests of family farmers, mergers mean that farmers have fewer and fewer choices for buying and selling, while vertical integration has meant that big agribusinesses face less competition throughout the chain and thus capture more and more of the profits.


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"vertical integration." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/vertical+integration>.

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