Vertical integration
Vertical integration this occurs when a company produces its own inputs (backward integration) or when a company owns the outlets through which it sells its products (forward integration).
Definitions
According to the Corporate Strategy by Lynch (4th edition),
- Vertical integration. This occurs when a company produces its own inputs (backward integration) or when a company owns the outlets through which it sells its products (forward integration).
According to Managerial Accounting by Braun, Tietz (5th edition),
- Vertical integration. The acquisition of companies within one's supply chain.
According to the Strategic Management by David and David (15th edition),
- Vertical integration. A combination of three strategies: backward, forward, and horizontal integration, allowing a firm to gain control over distributors, suppliers, and/or competitors respectively.