What is vertical intergation and advantages and disadvantaged?

Vertical integration is a business strategy where a company expands its operations by acquiring or merging with other businesses at different stages of the supply chain, either upstream (supply) or downstream (distribution). The advantages include increased control over production processes, reduced costs, and improved supply chain efficiency. However, disadvantages can include high capital investment, reduced flexibility, and potential regulatory scrutiny. Additionally, it may lead to a lack of focus if a company diversifies too broadly beyond its core competencies.