Degree of vertical integration, Project Management

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Degree of Vertical Integration

Vertical integration is the amount of production and distribution chain, from suppliers of raw materials and components to the delivery of finished products/ Service to the customers that is brought under the ownership of a company .

Two types of vertical integration are:

Forward Integration: Which that means expanding ownership of production and distribution chain forward towards the market.
Backward Integration: Which that means expanding ownership of the production and distribution chain backward towards the sources of supply.

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