Vertical Integration

Vertical Integration is when a company buys other business's to assist the main company, so that each support one another.

History

In the late 1800's John D. Rockefeller used the method of vertical integration to help support his business. His company of Standard Oil was supported through vertical integration as Rockefeller invested in barrel factories, oil fields, oil-storage facilities, pipelines, and railroad cars. Using vertical integration, Rockefeller's company became very successful, keeping the costs of his supplies low and his profits high.

John D. Rockefeller

In the chicken Industry each company supports each other in different ways. In the diagram above the Feed Mill supports the Breeder mill with food and supplies, the Breeder Mill than supports the Hatchery with eggs, leading to the Grow out House where the eggs grow into chickens and they than are transferred to the Processing Plant and Further Processing. All of these companies support each other, so that they all gain from one another.

by: Connor Dunn, Samantha Demers, Kyra Shumila

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