Vertical Integration is a business strategy where a company expands its operations by taking control of different stages of production or supply chain. This can involve acquiring suppliers (backward integration) or distributors and retailers (forward integration). The goal is to increase efficiency, reduce costs, and improve control over the production process. By integrating vertically, companies can streamline operations and reduce reliance on external partners. For example, a car manufacturer might buy a parts supplier to ensure a steady supply of components, or it could acquire a dealership to sell its vehicles directly to consumers. This approach can enhance profitability and market competitiveness.