Degree of vertical integration, Project Management

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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