A decision to carry out one of the activities in the value chain internally rather than to purchase externally from a supplier is a Vertical Integrated decision.
Vertical integration is a strategy businesses can use to reduce some costs and control the quality of the products and services they provide.In Vertical integration By merging various stages of the production processes and supply chain into its own operations, a company can create a competitive advantage.
One example of a company that is vertically integrated is Target, which has its own store brands and manufacturing plants. It creates, distributes, and sells its products—eliminating the need for outside entities such as manufacturers, transportation, or other logistical necessities.
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