anonymous
  • anonymous
what is vertical integration?
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  • Stacey Warren - Expert brainly.com
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schrodinger
  • schrodinger
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madhu.mukherjee.946
  • madhu.mukherjee.946
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.
madhu.mukherjee.946
  • madhu.mukherjee.946
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.
EclipsedStar
  • EclipsedStar
@madhu.mukherjee.946 please don't forget to cite your sources. Thanks! http://www.investopedia.com/terms/v/verticalintegration.asp

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