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Definition

Vertical integration

A grand strategy based on the acquisition of firms that supply the acquiring firm with inputs or new customers for its outputs. Vertical integration refers to the mergers or acquisitions of companies that have a buyer-seller relationship. Such a move may ensure either a dependable source of supply or control over quality of the service or product. 


The combining of two or more functions of a marketing channel under own management; one organization in the marketing channel assuming control of another.

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