Respuesta :
Developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor is called Vertical Integration.
What is Vertical Integration?
- Vertical integration is a tactic that enables a business to streamline operations by directly controlling different stages of the production process instead of depending on outside suppliers or contractors.
- Instead of outsourcing these operations, a business might achieve vertical integration by acquiring or forming its own manufacturers, distributors, and retail outlets.
A good illustration of vertical integration is Netflix, Inc. Before expanding into online streaming of films and films licensed from big studios, the company began as a DVD rental company. Then, Netflix executives recognized that by creating some of their own original content, like the popular series Grace & Frankie and Stranger Things, they might increase their profit margins. The Get Down, a 2016 movie that reportedly cost the corporation $120 million, is one of the disasters it also made.
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