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serious [3.7K]
3 years ago
7

5. Which term refers to gaining control of the many different

History
1 answer:
PilotLPTM [1.2K]3 years ago
5 0

Vertical Integration is the term refers to gaining control of the many different  businesses that make up all phases of a product's development.

<u>Explanation:</u>

Vertical Integration is the most common business and economics term. This is a strategy that a company can control various stages of the supply chain.

There are 4 phases in the supply chain. They are retail, distribution, manufacturing, and commodities.

The company will integrate the stages vertically while controlling the supply chain. Thus the companies will be integrated by purchasing the suppliers. In order to reduce the price of manufacturing.

Vertical integration has various benefits for companies. They are controlling the process, reducing costs and improving efficiencies.  

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