Vertical Integeration

Definition: Buying companies that make your business run.
By: Caroline Ulrich, Molly Kilroy, Michael Hargens.

Historical examples of vertical integration are: John D. Rockerfeller was in the oil business and was the leader of the oil company called Standard Oil, being in the oil business he bought barrel factories, oil fields and oil storage facilities. This helped increase profit.

Modern day example of vertical integration is: Dunkin' Donuts has to buy companies that make coffee beans, and tea leafs, factories that produce dairy such as cream, or milk, also sugar companies and companies that can provide them the ingredients for donuts, bagels, etc.  Also companies that produce packing things such as cups, covers, bags and straws.

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