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anonymous

  • one year ago

what is vertical integration?

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  1. madhu.mukherjee.946
    • one year ago
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    When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. Vertical integration can help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages. However, sometimes it is more effective for a company to rely on the expertise and economies of scale of other vendors rather than be vertically integrated.

  2. madhu.mukherjee.946
    • one year ago
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    Examples of vertical integration include: - A mortgage company that both originates and services mortgages, meaning that it both lends money to homebuyers and collects their monthly payments.

  3. EclipsedStar
    • one year ago
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    @madhu.mukherjee.946 please don't forget to cite your sources. Thanks! http://www.investopedia.com/terms/v/verticalintegration.asp

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