Vertical Combination (Noun)
Meaning
Absorption into a single firm of several firms involved in all aspects of a product's manufacture from raw materials to distribution.
Classification
Nouns denoting acts or actions.
Examples
- A vertical combination occurs when a company acquires or merges with its suppliers or distributors to control the entire production process.
- The steel company's vertical combination strategy allowed it to manage every stage of production, from mining iron ore to delivering finished steel products to customers.
- Through a series of strategic acquisitions, the tech firm achieved a vertical combination, integrating its manufacturing, assembly, and distribution operations under one umbrella.
- The oil company's vertical combination enabled it to extract crude oil, refine it, and distribute the final products to gas stations and other retailers.
- The food processing company's vertical combination allowed it to control every step of the production process, from farming and harvesting to packaging and distribution.