Wednesday, 4 March 2009

Vertical Intergration

Vertical Intergration -

This is where a company feels that it can control Prouction, Distribution, and Consumption at once.
For example: Apple Inc.

- Garageband - production
- iTunes - distribution
- iTunes media player - consumption
- Mac Computers - all 3.

This is an example of Vertical Intergration - as whatever the customer wants to do, Apple has accounted for and made a program for the job. Therefore keeping all sections providing a profit for the company. This seems to manopolise custom and makes things a lot harder for other companies.

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