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Vertical Integration
Presented by
Gwendolyn Gonzalez
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.
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
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
Vertical Integration
Advantages
 Gives you control over your firm
 Competitive advantages
Disadvantage
 The cost
 Most companies don’t recommend it
Real-World Example #1
• Vertical Integration
Comes to Health
Care
Real-World Example #2
Why Competing with
Apple is so Difficult
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.
Thank you for watching!
• For more information, contact me via
LinkedIn:
• Gwendolyn Gonzalez
• www.linkedin.com/in/gwendolyn-gonzalez

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Vertical integration