Editing Vertical Integration

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.

== External links and references ==

* [http://www.economist.com/node/13396061 Vertical Integration, by The Economist]
* [http://www.nationalchickencouncil.org/industry-issues/vertical-integration/ Vertical Integration, by National Chicken Council]
* [http://www.supplymanagement.com/news/2013/virtual-vertical-integration-is-the-future-of-supply-chain Virtual vertical integration is the future of supply chain]

[[Category:The Cultural Diplomacy Dictionary]]