Connell, Carol M.
2009
Vertically Integrated Chain in Wankel, Charles ~ Encyclopedia of Business in Today’s World
Sage; Thousand Oaks, California
pp. 1680-1683

1680
Definition-vertical integration:
“A vertically integrated chain represents a series of make or buy decisions made by firms, beginning with raw materials and manufacturing (backward integration) and moving forward to distribution and marketing (forward integration). To this end, a firm may build or buy a wholly owned subsidiary, secure a minority shareholding or join in a formal or informal strategic alliance to provide a specific segment of its value chain anywhere in the world where costs are lower and access to consumer markets are closer.”