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vertical integration |
Also found in: Dictionary/thesaurus, Financial, Wikipedia | 0.06 sec. |
vertical integrationForm of business organization in which all stages of production of a good, from the acquisition of raw materials to the retailing of the final product, are controlled by one company. A current example is the oil industry, in which a single firm commonly owns the oil wells, refines the oil, and sells gasoline at roadside stations. In horizontal integration, by contrast, a company attempts to control a single stage of production or a single industry completely, which lets it take advantage of economies of scale but results in reduced competition. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Previous DSB efforts examined vertical integration issues in early 1997 and found that major defense firms had increased vertical integration in some product areas, and noted that such vertical integration was not posing systemic problems at that time. 7 billion lb/yr capacity and also its first vertical integration with extrusion. Vertical integration can be strategic in many ways when a packer owns a large share of production, Stumo says. |
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