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vertical integration

vertical integration
Danh từ

This term describes a corporate strategy focused on supply chain control. It is primarily used in business, economics, and strategic management contexts to describe a company's move to reduce dependency on external vendors or distributors. The term carries a connotation of power, efficiency, and market dominance.

There are two primary directions of this strategy: backward integration, where a company moves up the supply chain toward raw materials, and forward integration, where it moves toward the end consumer. This is often contrasted with horizontal integration, which involves acquiring competitors at the same level of production.

Ý nghĩa

Danh từvertical integration

The strategic business arrangement where a company owns or controls multiple stages of its production process, from raw materials to final distribution.

The company achieved vertical integration by purchasing its own shipping fleet and raw material suppliers.

Từ liên quan

horizontal integrationoutsourcingdisintegrationsupply chainproductiondistributionmanufacturingupstreamdownstreammonopolyoligopolysynergyefficiencycostcontrollogisticsprocurementretailwholesaleraw materialcomponentassemblyvendorsupplierdistributorintermediarymiddlemanownershipmergeracquisitionconglomeratestrategycorporatemanagementoperationvalue chainoptimizationmarginprofitrevenuemarket sharecompetitionbarrier to entryeconomy of scaleresourceinventorywarehousetransportationquality controlstandardizationdiversificationspecializationinsourcingoffshoringonshoringinfrastructurepipelineecosystemintegrationhierarchystreamliningbottlenecklead timecapacityutilizationassetcapitalinvestmentportfoliogovernancemarket power
Cập nhật lần cuối: May 2026Báo lỗi