Vertical Integration

Owning more of your supply chain or value chain, making rather than buying, controlling distribution rather than relying on partners, to capture more margin and control quality.

Why it matters

Vertical integration can improve margins, quality, and customer experience, as many D2C brands and Apple have shown, but it adds cost and complexity. Deciding what to own versus outsource is a recurring strategic trade-off.

For example

A D2C brand starts making its own products instead of buying from suppliers, capturing more margin and controlling quality end to end.

Related terms

Economies of Scale D2C Business Model

Go deeper

See how founders actually handle this on Growing and marketing, part of the Starting Up hub.

eChai Partner Brands