What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor?.

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Developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor is called Vertical Integration.

What is Vertical Integration?

  • Vertical integration is a tactic that enables a business to streamline operations by directly controlling different stages of the production process instead of depending on outside suppliers or contractors.
  • Instead of outsourcing these operations, a business might achieve vertical integration by acquiring or forming its own manufacturers, distributors, and retail outlets. 

A good illustration of vertical integration is Netflix, Inc. Before expanding into online streaming of films and films licensed from big studios, the company began as a DVD rental company. Then, Netflix executives recognized that by creating some of their own original content, like the popular series Grace & Frankie and Stranger Things, they might increase their profit margins. The Get Down, a 2016 movie that reportedly cost the corporation $120 million, is one of the disasters it also made.

Know more about Vertical Integration with the help of the given link:

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