A form of vertical integration that involves the purchase of suppliers in order to reduce dependency.
A good example would be if a bakery business bought a wheat farm in order to reduce the risk associated with the dependency on flour.
Vertical Integration
When a company expands its business into areas that are at different points of the same production path.
A car company that expands into tire manufacturing would be an example of vertical integration. A company such as this is often referred to as vertically integrated.
