Vertical Integration

Vertical integration is all about integration pre or post steps of the value chain into your business model. Vertical integration may be pursued for a variety of reasons, including strengthening the supply chain, lowering production costs, capturing upstream or downstream revenues, or expanding distribution channels. To do this, one firm purchases or expands its client joruney, which is either preceding or following it in the supply chain process. Not only can vertical integration enhance earnings from newly acquired enterprises by selling directly to consumers, but it also ensures manufacturing efficiency and reduces delivery and transportation delays.

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