Vertical integration economics is the process of a business expanding its reach and scope in areas related to their core operations. It involves the combination of functions, resources, and activities that formerly existed separately. This could mean acquiring upstream supplier operations, downstream customer operations, or both. The objective is to control as many aspects as possible of the production process for better efficiency and profitability. By increasing vertical integration, businesses gain greater control over their operations and create tighter connections between all levels of the supply chain. This allows for better coordination between departments and provides better economies of scale. Ultimately, vertical integration can lead to improved customer service, cost savings and increased profits.