Vertical Consolidation refers to the process of businesses in a single industry consolidating, or uniting, under one umbrella. This involves merging companies on the same level of related operations from raw material acquisition through to transporting and distributing products. It is a business strategy that allows companies to increase their production capabilities, acquire new markets, achieve greater economies of scale, and increase profits. Vertical Consolidation also brings about an increased level of control among the businesses involved, enabling them to experience better planning, forecasting, and decision making.