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Management & Leadership vocabulary · Strategy and Planning

Vertical integration

Meaning in management & leadership, with examples

nounAdvanced term

In management & leadership, vertical integration means: Expanding ownership or control into earlier or later stages of the activities that supply or distribute a firm's products.

In Turkish: dikey bütünleşme

How it is used

Use when a firm takes over stages such as component production or retail distribution, not merely a larger market share.

Example sentences

  1. Vertical integration gave the furniture maker control of a timber-processing business.

    The firm moves upstream into a stage supplying its existing production.

  2. Opening company-owned shops was another step in the brand's vertical integration.

    Owning distribution moves the business downstream towards the final customer.

Common collocations

  • pursue vertical integration
  • backward vertical integration
  • strategyA long-term plan that sets out where an organisation wants to go and the main choices it will make to get there, such as which markets to enter and what to stop doing.
  • competitive advantageSomething that allows a company to do better than its competitors, such as lower costs, a stronger brand, better technology or more skilled people.

More terms: Strategy and Planning

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