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What does it mean to vertically integrate? Give example pls

business acumen
New answer on Jun 27, 2021
3 Answers
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Anonymous A asked on Jun 18, 2021

(edited)

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Ian
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updated an answer on Jun 18, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

A company that operates oil/gas rigs in the Permian Basin (upstream) buys an LNG and Oil export terminal in Houston (midsteam), and merges with a gas station company (downstream.

A Car Manufacturer like GM buys an OEM (original equiment manufacturer) and a car dealership.

(edited)

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Adi
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replied on Jun 19, 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

You can self learn here. There is tons of literature on this on investopedia & youtube. 

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Anonymous replied on Jun 27, 2021

It means a company buys another business up or down the value chain. E.g. A suger refinery buying the sugar cane farms to secure long-term supply (up), or a chocolate factory (down).

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Ian

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