The website above says that "Vertical integration is when a company controls more than one stage of the supply chain." Meaning that a company does the manufacturing and the distribution or any of the other three parts. Those other three being having the raw material doing the retail aspect as well as the after sale services. As long as a company is in charge of two or more of the five parts they are vertically integrated. This process can be extremely helpful to a company but it does have it's negatives as well
The pro's and con's of vertical integration are that this can help a company cut out the middleman and be more dependent on themselves and their employees but this can also be quite expensive. There is a potential to gain access to other big businesses but this process could also split the focus on how to be the most efficient in each of the businesses as well as reduce flexibility all together. This process can work and has worked for a lot of businesses but it may not be the most effective for all businesses. Netflix is one of the more recent companies that fit this description because they provide a way to stream TV shows and movies made by other companies as well as make their own Netflix original series and movies.
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