Business terms and jargon explained. Your business dictionary

What is Vertically integrated

This is when a company expands it business by taking over companies that are in the same market but at different levels of supply. This will reduce costs and can give greater control over the market. There is many advantages. E.g. a computer retail company takes over a computer manufacturing company. The two companies are in the same market field but at different levels. E.g. a farm buys a food retail store or visa versa.

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Term created / updated 2005-07-16 23:12:15

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