vertical integration
1
6.8
- noun
- /ˈvɜrtɪkəl ˌɪn.tɪˈɡreɪ.ʃən/
- Specialized
:
integración vertical
- The strategy of vertical integration allows a company to control the entire supply chain from raw materials to final product distribution.
Examples
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I did my thesis on vertical integration: owning production through distribution and retail.
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Does success require vertical integration from hardware to software to ecosystem to shops?
Blog text (27) -
Since the turn of the century, vertical integration has been a common feature of industry in advanced industrial nations.
Academic text (1990) -
Strategic vertical integration deals continue to be a key driver of M&A activity.
Blog text (26) -
Its organization is characterized by both horizontal and vertical integration.
Academic text (1990) -
Thus, by the turn of the century, in the United States and elsewhere, considerable vertical integration characterized steel, chemicals, and many other industries.
Academic text (1990) -
We gained efficiencies through vertical integration and through horizontal integration.
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While vertical integration, in some form, characterizes all industries, the level of integration varies among industries.
Academic text (1990) -
High-volume, low-cost production required guaranteed markets, which in turn led to vertical integration and limited competition.
Academic text (1999) -
But in other industries, vertical integration, or its close equivalents, is necessary to minimize industry costs and maximize supply security.
Academic text (1990)
Synonyms
Companies at different stages of making and selling join into one firm
A business practice where a company controls several production and sales stages
How Integrated
Surface Forms
Morphology
A learner who knows 'vertical' (relating to levels or up–down orientation) and 'integration' (combining into a whole) can get a general sense of "combining across levels," but the specific business sense — combining stages of production within one company — is technical and not fully predictable from the constituents alone. The term exists across many languages as a business/technical label, so it offers partial cues but still requires domain knowledge to be fully understood.
Etymology
Vertical integration gives a simple image: imagine a tall building where each floor does a different job, from raw materials at the bottom to shops at the top, all joined inside one company. The word vertical means 'up and down' and integration means 'joining together', so one firm brings these steps together to 'control every stage' of making and selling a product.