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Vertical Integration
(redirected from Vertically Integrated Company)

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia 0.01 sec.
Vertical Integration
A business strategy in which a company expands its operations to offer similar goods and services at a different point on the supply chain. For example, a widget wholesaler may expand into retailing widgets directly with consumers. More concretely, an oil exploration company may also begin refining oil in addition to its exploration operations. Vertical integration always occurs at different points on the supply chain: a retailer does not expand into retailing other products. Rather, it may move into wholesaling. See also: Horizontal integration.


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You may also want to engage in a joint venture by providing services that complement the services of others in a vertically integrated company.
Combining the capabilities and employees of these companies with Intechra creates a powerful, vertically integrated company with a full complement of remarketing, recycling and refurbishment services," Chip Slack, Intechra CEO, says.
Started as a maker of TVs and transistor radios in 1969, Samsung expanded into a vertically integrated company making everything from semiconductors to finished branded products.
 
 
 
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