Vertical Integration (redirected from Vertically-integrated)

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.