Take the amateur sourdough baker who fulfils their dream of opening a small sandwich shop. Customers adore their baguettes, so they hire a consultant to help them grow the business. They recommend vertical integration and taking control of the supply chain.
The next thing they know, they are sitting in a combine harvester harvesting grain from the 50,000-acre field they own.
Or, when during a haircut the consultant tells their local barber to buy an iron ore mine in Chile so they can make sure they will always have scissors.
If you take vertical integration to its logical step, every service company should buy children’s nurseries and a chain of undertakers to cover both ends of their customers’ lives.
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Source www.corporatejetinvestor.com
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