vertical integration

vertical integration
vertical integration vertical integration integration

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vertical integration UK US noun [U] (also vertical amalgamation, also vertical combination) ECONOMICS, MANAGEMENT
(also vertical merger) a situation where a company buys companies that are its suppliers and customers, taking over more stages of an industrial or commercial process: »

Mobile phone companies are becoming more powerful through vertical integration.

the degree to which a company carries out the different stages in an industrial or commercial process, rather than depending on outside suppliers and customers: »

In recent years, there are increasing number of Hong Kong manufacturers adopting a strategy of vertical integration to enhance value-added content to their products.

Compare HORIZONTAL INTEGRATION(Cf. ↑horizontal integration)
See also BACKWARD INTEGRATION(Cf. ↑backward integration), FORWARD INTEGRATION(Cf. ↑forward integration), VERTICAL DISINTEGRATION(Cf. ↑vertical disintegration)

Financial and business terms. 2012.

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Look at other dictionaries:

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  • Vertical integration — In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies are united through a hierarchy and share a common owner. Usually each member of the hierarchy produces a… …   Wikipedia

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  • Vertical Integration — When a company expands its business into areas that are at different points of the same production path. A car company that expands into tire manufacturing would be an example of vertical integration. A company such as this is often referred to… …   Investment dictionary

  • vertical integration strategy — UK US noun [C or U] ECONOMICS, MANAGEMENT ► a plan by a company to buy companies that are its suppliers and customers, taking over more stages of an industrial or commercial process: »Each company must match its vertical integration strategy to… …   Financial and business terms

  • vertical integration — vertical inte gration noun uncount BUSINESS a situation in which a single corporation owns several businesses that, in combination, control all the stages in producing and selling a product. For example, a corporation that owns a book publisher,… …   Usage of the words and phrases in modern English

  • vertical integration — noun absorption into a single firm of several firms involved in all aspects of a product s manufacture from raw materials to distribution • Syn: ↑vertical combination • Derivationally related forms: ↑vertical • Hypernyms: ↑consolidation,… …   Useful english dictionary

  • vertical integration — The combination of two or more companies at different stages in the value chain. For example, a manufacturer might purchase one of its suppliers or an organization involved in distributing its products. Vertical disintegration is said to occur… …   Accounting dictionary

  • vertical integration — Form of business organization in which all stages of production of a good, from the acquisition of raw materials to the retailing of the final product, are controlled by one company. A current example is the oil industry, in which a single firm… …   Universalium

  • vertical integration — noun The integrating of successive stages in the production and marketing process under the ownership or control of a single management organization. Ant: horizontal integration …   Wiktionary

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