vertical-integration
/ˌvɜː.tɪ.kəl ˌɪn.tɪˈɡreɪ.ʃən/ IELTSAcademic
noun
Vertical integration is a business strategy where one company controls several steps in making and selling a product. This can include suppliers, production, transport, and retail.
- The company grew through vertical integration.
- They bought suppliers to support vertical integration.
- Vertical integration can reduce costs and delays.
Adinary Nuance
Vertical integration is not the same as horizontal integration. Horizontal integration means growing by buying or merging with similar companies at the same stage. Vertical integration means controlling different stages of the supply chain. Use vertical integration when a company owns parts above or below its main business.
In other languages
- Vietnamese
- tích hợp dọc
- Spanish
- integración vertical
- Chinese
- 纵向整合
- Japanese
- 垂直統合
- Korean
- 수직적 통합
Etymology
Vertical integration is a modern business term. It combines vertical, meaning up-and-down parts of a chain, with integration, from Latin integrare, meaning to make whole.
Common phrases
vertical integration strategyfull vertical integrationvertical integration of supply chains
Synonyms
Related words
Frequently asked questions
- Is vertical integration a common business term?
- Yes. It is common in business, economics, and management writing.
- What is the difference between vertical integration and horizontal integration?
- Vertical integration controls different stages of production. Horizontal integration combines similar businesses at the same stage.
- Is vertical integration used in business reports?
- Yes. It is often used when companies discuss cost control and supply chains.