Vertically Integrated Definition
A vertically integrated company is one that controls the entire supply chain of its product. This means that the company not only produces the product, but also controls all aspects of its distribution.
The advantages of vertical integration are that it can help to control costs, quality and the availability of the product. It can also lead to increased efficiency and economies of scale. The disadvantages include the potential for over-reliance on one supplier and a loss of flexibility.
In recent years, there has been a trend towards companies becoming more vertically integrated in order to gain a competitive advantage.
