When a business expands its operations within the same value chain, it is known as vertical integration. Vertical integration is of two types: Upline vertical integration or backward integration and downline vertical integration or forward integration.
If a business starts producing what its customer produced previously, it is forward integration and if the business buys out its suppliers, it is backward integration.
Example
In the electronics space, a Korean company, majorly a supplier of displays to other manufacturers underwent downline vertical integration, and started manufacturing devices to be sold in the same market. Here, the Korean company expanded within the sane supply chain or vertically integrated through downline.
Browse the definition and meaning of more terms similar to Downline Vertical Integration. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.
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