Vertical Integration (1 Viewer)

[hYperTrOphY]

Can someone please explain vertical integration for me? I don't quite grasp it.

 

[hYperTrOphY]

Oh ok, that's quite simple.

My notes:

vertical integration is the extension of business activities into stages of production that provide a businesses inputs (backward integration) or absorb its output (forward integration).
In the souricing contxt, vertical integration refers to the extent to which the business either provides its own inputs or buys them from other sources.

So using your explanation, would that mean that in my notes when it says "the extension of business activities into stages of production..." it means what you said in relation to 'merging'?

 

[hYperTrOphY]

Excellent, thank you!