Vertical+Integration

=Vertical integration-a process in which several steps in production are controlled by a single company or entity, in order to increase that company's power. There are three varieties of vertical integration: backward, forward, and balanced. A company offers backward vertical integration when it controls supplements that produce some of its inputs used in the production of its product. A company uses forward vertical integration when it controls distribution centers and retailers were its products are sold. Backward vertical integration means a firm control of all materials. = =American Apparel is an example of a balanced vertical integration corporation. They control the dyeing, finishing, designing, sewing, cutting, marketing and distributing of its company' s products.= = =

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