GENERAL KNOWLEDGE

Detailed explanation-1: -Vertical integration is a corporate strategy that involves growth through streamlining operations. This occurs when one company acquires a producer, vendor, supplier, distributor, or other related company within the same industry.

Detailed explanation-2: -The stages relative to vertical integration are materials, suppliers, manufacturing, and distribution.

Detailed explanation-3: -An acquisition is an example of vertical integration if it results in the company’s direct control over a key piece of its production or distribution process that had previously been outsourced. A company’s acquisition of a supplier is known as backward integration.

Detailed explanation-4: -There are three varieties of vertical integration: backward (upstream) vertical integration, forward (downstream) vertical integration, and balanced (both upstream and downstream) vertical integration.

Detailed explanation-5: -What is Vertical Integration? Vertical Integration involves the merger of two or more companies that serve different functions in the supply chain. In such a case, the entire (or most) of the supply chain is controlled by the company.