Vertical Integration

Real World Example

During the Industrialization era from 1870 to 1900, vertical integration was a strategy where a company would control multiple stages of production and distribution. It was important because it allowed businesses to reduce costs, increase efficiency, and limit competition by owning their supply chain. This strategy addressed problems like high production costs and inefficient processes. Today, vertical integration still matters as it helps companies maintain control over their products' quality and pricing. A relatable example is Apple's control over its entire product line, from design to retail, ensuring consistent quality and customer experience.