What is vertical integration?

Vertical integration occurs when a company attempts to broaden its footprint across the supply chain or manufacturing process. Instead of sticking to a single point along the process, a company engages in vertical integration to become more self-reliant on other aspects of the process.

What are the different types of vertical integration?

The differences depend on where the firm is placed in the order of the supply chain. There are three varieties of vertical integration: backward (upstream) vertical integration, forward (downstream) vertical integration, and balanced (both upstream and downstream) vertical integration.

Is a company fully vertically integrated?

The company is considered fully vertically integrated when it controls all aspects of its production from raw materials to final sales. This is the most comprehensive form of vertical integration. 2. Quasi vertical integration In this state, the company does not own all, but has significant control over its supply chain.