What is Quasi vertical integration?

Quasi vertical integration refers to a business strategy where a company collaborates closely with suppliers or distributors without fully merging or acquiring them. This approach allows firms to achieve some benefits of vertical integration, such as improved supply chain coordination and cost efficiencies, while maintaining operational independence. Companies may engage in long-term contracts, joint ventures, or strategic alliances to secure essential resources or market access. Essentially, it provides flexibility and reduces risk compared to complete vertical integration.