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27 August, 02:30

10.

What is vertical integration?

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Answers (2)
  1. 27 August, 02:33
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    Vertical integration is a strategy where a company controls its suppliers and distributors to control its value.

    Explanation:

    Vertical integration allows companies to control the process, reduce costs, and improve efficiencies. However, this strategy also has disadvantages, including the significant amounts of capital investment that it requires.

    A very good example of vertical integration is Netflix because this company started as a DVD rental company supplying film and TV content, but the company's executive management realized they were able to generate more revenue by changing to original content creation.
  2. 27 August, 02:33
    0
    Answer: Vertical integration is firm taking control of and producing its inputs and outputs rather than using the market.

    Example: A vertically integrated produce company, for example, might hold a farm, a produce distribution business, and a green grocery.
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