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vertically integrated chain  

Definition

  • 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. [Source: Encyclopedia of Business in Today's World; Vertically Integrated Chain]

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https://concepts.sagepub.com/social-science/concept/vertically_integrated_chain

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