Vertical integration is a business strategy employed by companies to increase their level of control over their own supply chain. It involves a company moving into different stages of production and distribution as part of an integrated production process. By taking a vertically integrated approach, businesses can save money and increase efficiency throughout the lifecycle of their products, from raw materials to manufacture, transportation, and sales. Additionally, vertical integration may provide a competitive advantage in today’s market, allowing companies to quickly respond to shifts in customer demand. Putting forth strategic efforts to follow a vertical integration strategy can help companies access top talent and technology, while ensuring consistent supply and quality—key factors that contribute to success in the modern economy.
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