Apple is an example of a company that uses vertical integration for its business.

They own many

distribution stores, content providers, and carrier services. Owning these help them manage and control
the desired products’ demand and market. They control and overlook everything and don’t have any
third-party services. By using vertical integration, Apple has a bigger advantage over the industry’s
companies.

Carnegie Steel Company was a company that produced steel. It was created by Andrew Carnegie and
others who overlooked the many businesses at the steel mills. For business to be more profitable and
reduce competition, Andrew used vertical integration. Using vertical integration, he bought all the
companies that made the materials that were needed for the steel company. This saved him money and
allowed him to make other purchases to make his shipments go quicker. He also didn’t have to go
through anyone to get something for him. He was able to get it himself and that helped him reduce
competition.

Vertical integration has many affects over everyone and the society. Many of the advantages include
that businesses may introduce new services to their portfolio. For example, a business that is in the
making may provide the product servicing and product assembly; by doing so, a corporation is acquiring
two separate facilities and combining the two to increase revenues. But, one disadvantage may be how
easily the integration goes; by combining businesses, you are getting two separate places with various
management and operational, policies, and expenses. When you combine the two services, you are
combining the entirety of each company.