Vertical integration is when a large company owns the businesses that they get their supplies from.
John Rockefeller used vertical integration to make more money. He saved money on supplies which increased profits.
If Friendly's owned these businesses, they would be using vertical integration.
Higher profits due to lower costs for supplies
Supplies can be attained faster and easier
Everything is made on site
Higher costs if the company is unable to make supplies efficiently
There is no competition so the supplies may be a lower quality
The business may become a monopoly due to it's large size
Companies that are vertically integrated today:
created by- Allie, Meagan, and Sara