Vertical+Integration+(1-5)

Vertical integration is a management control. Vertically integrated companies unite through a hierarchy and share a common owner. The are three types of vertical integration backwards, forward, balanced. Forward integration: the company sets up subsidiaries that distribute or market products to customers. Backward: The company sets up subsidiaries that produce some of the inputs to be used in production of its products like a automobile company that owns a tire company. Balanced: A company has a backward and forward integration.

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