Nutrition Business Journal

A business primer on vertical integration

How to think strategically as value moves upstream and ‘clustering’ replaces acquisition as the path to innovation and collaboration
Jul. 6, 2011 5:38pm

The continually evolving economy of the last couple of years has prompted companies around the world to seek a competitive edge, while lowering operational costs and focusing on effi ciency and effectiveness. The search for feasible growth models that provide the right strategic moves opens the dialogue for companies to more closely examine the strategy of vertical integration. The objective of vertical integration is the creation or enhancement—either upstream or downstream—of market positioning, targeting particular markets for the development and extension of a supply chain. This strategy ideally creates or enhances both cost...