Wednesday, February 23, 2022

Vertical Integration

     Vertical integration seems like it is a very wise, and effective business strategy. I think it sounds like a logical path for a company to take. I know that it brings up the threat of monopolies, but looking at it from the point of view of a company it would be a very smart move. Now obviously I am not in support of companies forming monopolies, but you have to admit that if you were the owner of a company using suppliers and transporters, you would want to save as much money as possible. The goal of a company is not always to be fair to the competition, the goal is to make the most profit for the people above and below you in your own company. You cannot always take into account the feelings and situations of those outside of your group. I understand that monopolies only do good for the group that is in control, but if you put yourself in the company's shoes you would want to do whatever you can to gain the most control. The basics of vertical integration as well as a very knowledgable definition can be found in this link.

Vertical Integration Strategy: Advantages, Disadvantages, Types

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