Talk:Vertical integration/Archives/2011

Economics

I've heard that they want to expand this article by merging it with vertical expansion. Well, isn’t it all most the same? But at the same time for those who have hard time distinguishing between vertical expansion and vertical integration, then I recommend to read some articles.

To expand can mean to things: either buy another company or merge. To integrate: well that’s more of a merge, but it is possible to buy, let’s say 49% of shares, well you bought a bite of that company. In the end it’s the same shit!!!

1. Masetn, S. E., Meehan,J W.,Jr., & Snyder, E. A. 1989, vertical integration in the u.s. auto industry.

This is just one of hundreds of articles about vertical integration.

Rockefeller

Rockefeller, cited in this article, did not use vertical integration. Stockholders of smaller oil companies assigned their stock to his Standard Oil Company, which then consolidated their operations. The SOC ultimately reigned over virtually the entire world petroleum market. Therefore, Rockefeller's strategy was "horizontal integration," a much less justifiable method of monopolizing an industry through allying with competitors.

list of horizontal integration

i would like to know at least 1,000,000,000,000 examples of horizontlal integration

Hmmm, that is more than the entire human population, so each person must have involvement in at least 150,000 companies.

Potential Example

I've read that the clothing company American Apparel is pretty vertically integrated. I don't believe that they own the facilities that produce the raw materials, but I think they do own almost everything after that(looms to make their cloth, the production facilities, and stores they sell their products in). Might be a good item to beef up the examples section with...

American Apparel is almost balanced, but not completely. They don't own the cotton fields or employ cotton pickers! --Coolcaesar (talk) 06:17, 4 January 2010 (UTC)

Another Potential Example

I am writing a paper for an MBA class on supply chains. I may add something here, it is also likely that I will not have the time. In case I don't have the time or if someone is more knowledgeable/able: Anheuser-Busch is a good example of a vertically integrated supply chain. They own the agricultural operations, the rail car manufacturing, the rail cars, can manufacturing, can recycling, crown manufacturing, and bottle manufacturing. The only things missing are the company stores.  :)

A list of the A-B business units can be found here (http://www.anheuser-busch.com/business_units/index.html). JT Pickering 03:57, 14 May 2007 (UTC)

Vertical Expansion

I agree. Vertical expansion is a method of accomplishing vertical integration. Maybe a section describing vertical expansion and searches on this topic lead to vertical integration. JT Pickering 04:03, 14 May 2007 (UTC)

I also agree. Also, the article on vertical expansion doesn't really do the topic justice. E Bellamy - 22 May 2007

hi what is vertical integration it all about please hellp —Preceding unsigned comment added by 78.148.161.202 (talk) 13:46, 28 March 2009 (UTC)

I do not agree with the above statement. As per my view, vertical integration means all necessary activity done by same organisation. For example: Suzlon Energy is called a vertical integrated company bacause it comprised all activity by using different name (Using Subsidary Company).

Downstream vs upstream

The use of downstream and upstream in this article is very confusing: "Vertical integration is the degree to which a firm owns its downstream suppliers and its upstream buyers." It is used in the opposite meaning compared to the usage in the article Supply_chain_management. Could we change this? Mårten Berglund (talk) 12:29, 2 May 2011 (UTC)

Agreed. Even in the same section, "backward" refers to suppliers and "forward" refers to retailers.