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Alanna Nicholson
24 December, 05:21
10.
What is vertical integration?
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Deven Avila
24 December, 06:30
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Answer: Vertical integration is firm taking control of and producing its inputs and outputs rather than using the market.
Example: A vertically integrated produce company, for example, might hold a farm, a produce distribution business, and a green grocery.
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Fernanda Jacobson
24 December, 07:43
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Vertical integration is a strategy where a company controls its suppliers and distributors to control its value.
Explanation:
Vertical integration allows companies to control the process, reduce costs, and improve efficiencies. However, this strategy also has disadvantages, including the significant amounts of capital investment that it requires.
A very good example of vertical integration is Netflix because this company started as a DVD rental company supplying film and TV content, but the company's executive management realized they were able to generate more revenue by changing to original content creation.
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