Vertical Integration

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Forbes  Jun 22  Comment 
There's reason to give Musk some leeway as he seeks to shore up SolarCity and covert Tesla into the first vertically integrated electric car company.
Forbes  Jan 12  Comment 
Chinese entertainment conglomerate Dalian Wanda Group announced Monday night that it had acquired U.S. film and TV production company Legendary Entertainment for $3.5 billion in cash.
Forbes  Dec 19  Comment 
Apple has become famous for developing much of its own technology in-house -- or "vertical integration." But recent changes show just how integral that philosophy is to the company's strategy going forward.
Automotive World  Oct 20  Comment 
BY ALAN BUNTING. News that DTNA will launch two in-house mid-range diesels will have sent shockwaves down the US truck supply chain The post COMMENT: Vertical integration moves down the US truck weight range appeared first on Automotive World.
newratings.com  Sep 12  Comment 
Gerry Weber continues its vertical integration strategy DGAP-News: Gerry Weber International AG / Key word(s): 9-month figures Gerry Weber continues its vertical integration strategy 12.09.2014 /...




 
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This article defines the term vertical integration.

In microeconomics and strategic management, the term vertical integration is a type of related diversification that describes a style of nearly total ownership and control. The degree to which a firm owns its upstream suppliers and its downstream buyers determines how vertically integrated it is. Note, however, that there is no ratio or quantifiable measure to denote this.

Vertically integrated companies are united through a hierarchy and share a common owner. Usually each member of the hierarchy produces a different product or service, and the products are combined to satisfy a common need. It is contrasted with horizontal integration, in which one part of the production process is expanded across several different market segments. A common successful horizontal integration example is how Intel (INTC) has dominated the computer processor market, supplying such chips to several different manufacturers, such as Dell (DELL) , Toshiba (TOSBF) , and the Hewlett-Packard Company (HPQ) .

Vertical integration is one method of avoiding the hold-up problem. A monopoly produced through vertical integration is called a vertical monopoly, although it might be more appropriate to speak of this as some form of cartel.

==Types of Vertical Integration==There Is No Such Thing.



References

  1. http://en.wikipedia.org/wiki/Vertical_integration
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