Vertical integration is a business strategy where a firm gains control of suppliers or distributors. It can provide benefits like competitive advantages and control over the firm, but also carries risks and costs. A company should consider vertically integrating when the benefits outweigh the risks, and understand that integrating vertically exposes them to financial risk. The presentation reviewed the concept of vertical integration and when companies should consider it as a strategy.

1. Vertical Integration
Presented by
Gwendolyn Gonzalez

2. Learning Objectives
At the end of this video, you will be able to:
 Identify when a company should take the risk to
integrate vertically.
 Understand the risk that companies face when
deciding to integrate vertically.

3. Vertical Integration
What?
A business strategy used by a firm to gain
companies from previous supplier or distributor
Where?
In Business/ Hospitals
Who?
CEO and Leadership Team

4. What is the benefit of knowing this?
• Vertical Integration can be beneficial to all
companies.
• Understand what risk are implicated when a
company decides to Integrate vertically

5. Vertical Integration
Advantages
 Gives you control over your firm
 Competitive advantages
Disadvantage
 The cost
 Most companies don’t recommend it

6. Real-World Example #1
• Vertical Integration
Comes to Health
Care

7. Real-World Example #2
Why Competing with
Apple is so Difficult

8. Learning Objectives’ Review
 Identify when a company should take the
risk to integrate vertically.
 Understand the risk that companies face
when deciding to integrate vertically.

9. Thank you for watching!
• For more information, contact me via
LinkedIn:
• Gwendolyn Gonzalez
• www.linkedin.com/in/gwendolyn-gonzalez