Definitions for vertical integration
This page provides all possible meanings and translations of the word vertical integration
vertical integration, vertical combination(noun)
absorption into a single firm of several firms involved in all aspects of a product's manufacture from raw materials to distribution
The integrating of successive stages in the production and marketing process under the ownership or control of a single management organization.
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.
The numerical value of vertical integration in Chaldean Numerology is: 9
The numerical value of vertical integration in Pythagorean Numerology is: 6
Sample Sentences & Example Usage
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.
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"vertical integration." Definitions.net. STANDS4 LLC, 2016. Web. 30 Apr. 2016. <http://www.definitions.net/definition/vertical integration>.