What is it called when a company buys the suppliers or raw materials and the distributors of its product?

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2026-08-03 17:50

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When a company buys its suppliers or raw materials, as well as the distributors of its product, it is referred to as vertical integration. This strategy allows the company to control multiple stages of the production and distribution process, potentially reducing costs and increasing efficiency. Vertical integration can be either backward (acquiring suppliers) or forward (acquiring distributors).

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