Vertical integration refers to the acquisition or merger of suppliers or customers in the same industrial chain. In this mode, enterprises will bring all or part of the supply chain or sales channels into their own organizational structure. The purpose of this model is to integrate some links in the enterprise industrial chain and make use of its industrial resources, thus reducing trade risks, enhancing market competitiveness and improving production efficiency.
Vertical integration mode is an important way for enterprises to realize the integration of upstream and downstream of industrial chain, weave their own commercial network and improve profits and market competitiveness.