USA HISTORY

Detailed explanation-1: -As a company engages in more activities along a single supply chain, it may result in a market monopoly. A monopoly that occurs due to vertical integration is also called a vertical monopoly.

Detailed explanation-2: -Traditional monopolies are achieved through horizontal integration, when one firm merges with its direct competitor, creating a larger firm that controls a greater portion of the market. Vertical integration describes a circumstance when a single firm seeks to control more than one stage in the supply chain.

Detailed explanation-3: -Vertical Integration was first used in business practice when Andrew Carnegie used this practice to dominate the steel market with his company Carnegie Steel. It allowed him to cut prices and exhuberate his dominance in the market. Currently, this is considered a vertical monopoly and is illegal as an entity.

Detailed explanation-4: -Vertical integration is a business strategy where the business itself controls the supply chain and multiple stages of its production process, thus eliminating or reducing third-party vendor dependencies.

Detailed explanation-5: -One example of a company that is vertically integrated is Target, which has its own store brands and manufacturing plants. It creates, distributes, and sells its products-eliminating the need for outside entities such as manufacturers, transportation, or other logistical necessities.