USA HISTORY

Detailed explanation-1: -A company may achieve vertical integration by acquiring or establishing its own suppliers, manufacturers, distributors, or retail locations rather than outsourcing them. However, vertical integration may be considered risky potential disadvantages due to the significant initial capital investment required.

Detailed explanation-2: -Vertical integration is the purchase of companies within a company’s existing supply chain as opposed to horizontal integration, which is the purchase of a competitor.

Detailed explanation-3: -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-4: -A company can pursue vertical integration when it can increase its profits by obtaining better control of its operations. Through this growth method, it can reduce its costs across different parts of its production cycle, ensure higher quality control and get more control of information across their supply chain.