Complete Vertical Integration (CVI) refers to a company's strategy of controlling and integrating all stages of the value chain within an industry. This typically includes the vertical integration of suppliers, manufacturing, distribution and marketing.
Through CVI, a company strives to gain control over all aspects of its production and distribution processes in order to increase efficiency, reduce costs and improve quality. This can be done by building its own production facilities, acquiring suppliers or distribution channels and developing its own marketing strategies.
The advantages of CVI lie in the direct control over all processes, which enables a faster response to market demands, better quality assurance and improved value creation. However, CVI can also be associated with challenges such as higher investment costs and risks, especially if the company expands into areas outside its core business.
