Definition: A company acquires or merges with downstream businesses to control the distribution and sale of products.

Purpose and advantages

Definition: A company acquires or merges with upstream companies to control the supply and production of products.

Purpose and advantages

Definition: A company engages in both forward and backward vertical integration, that is, acquiring upstream and downstream businesses.

Purpose and advantages

Definition: A company acquires or merges with businesses similar to its own in the same industry.

Purpose and advantages

Whether the control and expansion of distribution channels is conducive to market development and sales growth.

Product life cycle and market development trends.

Whether there are potential partners and suitable acquisition targets.

Supply chain complexity and the company's position within the supply chain.

Whether the company's own resources and capabilities are suitable for vertical integration.

Have the ability to manage the merger and acquisition integration process.

Whether there are legal and policy restrictions, such as antitrust regulations.

Government policy support and supervision of vertical integration activities.

For example, an electronics manufacturer acquires an electronics retailer to control product sales channels and market share.

For example, an automobile manufacturer acquires a parts supplier to ensure stable supply and quality of parts.

For example, a food processing company acquired both raw material suppliers and food retailers, achieving control of the entire industry chain from product research and development to sales.

For example, a telecommunications operator acquires an Internet service provider to expand its business scope and increase product diversity.