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Can you explain vertical integration?

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Question ajoutée par AHMED IMRUL KAYES , Senior Consultant , HR Bangladesh Ltd.
Date de publication: 2015/01/01
Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

In microeconomics and management, vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. It is contrasted with horizontal integration. Vertical integration has also described management styles that bring large portions of the supply chain not only under a common ownership, but also into one corporation (as in the1920s when the Ford River Rouge Complex began making much of its own steel rather than buying it from suppliers).

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