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
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
vertical integrationnoun
The integrating of successive stages in the production and marketing process under the ownership or control of a single management organization.
Wikipedia
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
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
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.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of vertical integration in Chaldean Numerology is: 9
Pythagorean Numerology
The numerical value of vertical integration in Pythagorean Numerology is: 6
Examples of vertical integration in a Sentence
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.
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.
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.
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.
Translations for vertical integration
From our Multilingual Translation Dictionary
- 垂直統合Japanese
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"vertical integration." Definitions.net. STANDS4 LLC, 2025. Web. 18 Mar. 2025. <https://www.definitions.net/definition/vertical+integration>.
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