vertical integration

USAGE SUMMARY

The phrase "vertical integration" is correct and usable in written English.
It is used to describe a business practice in which a single company operates multiple stages of its business supply chain. For example, a car manufacturer that also owns steel mills and tire factories would be described as having vertical integration.

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

These factors are integrated using vertical integration.

International Journal of Disaster Risk Science

More vertical integration!

The Guardian - Travel

Economists call this "vertical integration".

The New Yorker

It's a world of vertical integration.

The New York Times

Which brings us to vertical integration.

Harvard Business Review

Run-of-the-mill vertical integration stuff.

The New York Times - Style

The business model was called "vertical integration".

The Guardian

Vertical integration and technology: theory and evidence.

Harvard University

"Now we're talking about vertical integration again".

The New York Times

"What this really amounts to is vertical integration," he said.

The New York Times

Concentration and vertical integration are a deadly combination.

The New York Times

Expert writing Tips

Best practice

Use "vertical integration" when analyzing a company's competitive advantage or market structure, as it can indicate barriers to entry and potential for innovation.

Common error

Don't confuse "vertical integration", which is about controlling the supply chain, with diversification, which is about entering new markets or industries. One focuses on depth within an industry; the other focuses on breadth across different sectors.

Linguistic Context

The phrase "vertical integration" functions primarily as a noun phrase, often serving as the subject or object of a sentence. Ludwig examples show it describing a business strategy or model. Ludwig AI confirms its correctness in written English.

Expression frequency: Very common

Frequent in

News & Media

45%

Formal & Business

30%

Science

20%

Less common in

Academia

5%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "vertical integration" is a common term in business and economics, referring to a company's control over its supply chain. Ludwig examples confirm its frequent use in news, business, and academic contexts. As highlighted by Ludwig AI, the phrase is grammatically correct and widely used in professional settings. When writing about business strategy, using "vertical integration" provides clarity and precision. Remember to differentiate it from diversification. By understanding its nuances and implications, you can effectively communicate about business operations and competitive advantages.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

complete ownership of the value chain

Focuses on the company's ownership and management of all activities that add value.

in-house manufacturing and distribution

Specifies that both manufacturing and distribution are done internally, not outsourced.

integrated production process

Emphasizes the interconnectedness and unity of the production stages.

vertically aligned operations

Refers to the alignment of operations across different stages of production or service.

end-to-end control

Focuses on complete control over the entire process, from start to finish.

internalized supply network

Emphasizes that the supply network is managed within the company rather than relying on external suppliers.

supply chain consolidation

Highlights the act of combining different parts of the supply chain under one entity.

vertically structured organization

Focuses on the organizational structure that supports control over multiple stages.

full-stack business model

Describes a business approach where a company handles all layers of its operations.

self-sufficient production system

Highlights the independence and autonomy of the production process.

FAQs

How does "vertical integration" affect a company's operations?

"Vertical integration" allows a company to control its supply chain, potentially reducing costs and improving efficiency. It can also offer greater control over quality and reduce dependence on external suppliers.

What are some advantages of "vertical integration"?

Advantages of "vertical integration" include lower transaction costs, improved coordination, and greater control over the supply chain. It can also provide a competitive advantage by creating barriers to entry for competitors.

What are some disadvantages of "vertical integration"?

Disadvantages of "vertical integration" include increased capital investment, reduced flexibility, and potential for decreased efficiency if not managed effectively. It can also lead to a lack of specialization and innovation.

What's the difference between "vertical integration" and "horizontal integration"?

"Vertical integration" involves controlling different stages of the supply chain, while "horizontal integration" involves acquiring or merging with competitors in the same industry.