Vertical integration is when the company controls more than one stages (commodities, manufacturing, distribution, and retail) of the supply chain. The supply chain is process that business uses to manufacture a product from raw material to final product and delivery to consumer. There are two types of vertical integration, forward and backward integration. Forward integration are companies that control beginning of the supply chain that control the final product for example iron miner that own downstream activities such as steel factories. Backward integration is the end of supply chain that takes on activities upstream for example when a movies distributor, such as Netflix also creates content (Amadeo, 2016).
I work for Silfex, Inc.