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English definition of “vertical integration”

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vertical integration

noun [U]
 
 
( also vertical amalgamation, also vertical combination) ECONOMICS, MANAGEMENT
( also vertical merger) a situation where a company buys companies that are its suppliers and customers, taking over more stages of an industrial or commercial process: Mobile phone companies are becoming more powerful through vertical integration.
the degree to which a company carries out the different stages in an industrial or commercial process, rather than depending on outside suppliers and customers: In recent years, there are increasing number of Hong Kong manufacturers adopting a strategy of vertical integration to enhance value-added content to their products.
→  Compare horizontal integration →  See also backward integration , forward integration , vertical disintegration
(Definition of vertical integration from the Cambridge Business English Dictionary © Cambridge University Press)
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