Editing Vertical Integration
Warning: You are not logged in. Your IP address will be publicly visible if you make any edits. If you log in or create an account, your edits will be attributed to your username, along with other benefits.
The edit can be undone.
Please check the comparison below to verify that this is what you want to do, and then save the changes below to finish undoing the edit.
Latest revision | Your text | ||
Line 1: | Line 1: | ||
A term used in microeconomics and management to describe the process whereby a company expands its business into areas that are at different points on the same production path. In a vertically integrated company, each member of the supply chain is engaged in a different part of the production process (e.g. manufacturing, transporting, marketing, and retailing). The products and services come under a common ownership. For instance, a solar company producing photovoltaic products may also manufacture cells, wafers, and modules to create these products. There are two forms of vertical integration: backward and forward. Vertical [[integration]] has a number of advantages. In addition to reducing costs and improving efficiency, it also helps to reduce turnaround time and increase financial growth. | A term used in microeconomics and management to describe the process whereby a company expands its business into areas that are at different points on the same production path. In a vertically integrated company, each member of the supply chain is engaged in a different part of the production process (e.g. manufacturing, transporting, marketing, and retailing). The products and services come under a common ownership. For instance, a solar company producing photovoltaic products may also manufacture cells, wafers, and modules to create these products. There are two forms of vertical integration: backward and forward. Vertical [[integration]] has a number of advantages. In addition to reducing costs and improving efficiency, it also helps to reduce turnaround time and increase financial growth. | ||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
− | |||
[[Category:The Cultural Diplomacy Dictionary]] | [[Category:The Cultural Diplomacy Dictionary]] |