Business Plan Dictionary
What does verticalization mean?
This was used in a business planning / marketing meeting I was in. I’m low enough on the totem pole I didn’t ask the definition, and now I can’t find a dictionary, printed or online, that has it. I’m positive of the spelling.
I think you may be referring to Vertical Integration….I’ve NEVER heard the term “verticalization” in any business sense…
the term vertical integration describes a style of ownership and control. Vertically integrated companies are united through a hierarchy and share a common owner. Usually each member of the hierarchy produces a different product or service, and the products combine to satisfy a common need.
One of the earliest, largest and most famous examples of vertical integration was the Carnegie Steel company. The company controlled not only the mills where the steel was manufactured, but the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore and the railroads that transported the coal to the factory, the coke ovens where the coal was coked, etc.
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