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Vertical integration

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In microeconomics, management and international political economy, vertical integration, also referred to as vertical consolidation, is an arrangement in which the supply chain of a company is integrated and 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 contrasts 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 - Wikipedia Jump to content From Wikipedia, the free encyclopedia When a company owns its supply chain A diagram illustrating horizontal integration and contrasting it with vertical integration Marketing Key concepts Account-based marketing Activation Annoyance factor Attribution Distribution Brand licensing Brand management Cannibalization Co-creation Communications Consumer behaviour Consumer culture Digital marketing Dominance Effectiveness Ethics Horizontal integration Influencer marketing Management Mix Pricing Product marketing Promotion Retail S-T-P Segmentation Tar

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