3 ms·
They were technically horizontally integrated too, since the entire reason they were able to exist is situations where jobs like mining were created in isolated
by KoftaBob 4y ago
They were technically horizontally integrated too, since the entire reason they were able to exist is situations where jobs like mining were created in isolated areas with no other places to live.
Workers had no other options but to live in that company town and spend their money in company town stores.
All vertical integration means is that a company has direct control over most/all of the supply chain they need to get their product made and sold. They don't need 3rd parties to supply them with any of the steps in the process.
That obviously gives them a competitive advantage, but it doesn't involve directly removing other competitors the way horizontal integration does.
- paulryanrogers 4y agoI'm not so sure that vertical integration is much more innocent than horizonal. Once a single company dominates an industry it has negative effects on the competitiveness of that and adjacent markets.
- KoftaBob 4y agoA single company dominating an industry is the definition of horizontal integration. You seem to be confusing what the two terms mean.