Vertically Integrated

Vertically Integrated refers to a business strategy where a company controls multiple stages of production or Supply Chain, from raw materials to final product delivery. This integration allows the company to improve efficiency, reduce costs, and gain greater control over its operations and quality.

Examples:

• A car manufacturer that owns the factories producing parts, assembles the vehicles, and also runs its own Dealerships.
• A coffee company that grows its own coffee beans, processes them, roasts them, and sells the final product directly to consumers.

Cases:

• Apple Inc. controls the design, manufacturing, and retail of its products, enhancing product quality and customer experience.
• Netflix started as a streaming service but has invested in producing its own content, thereby controlling both distribution and production.