Vertical acquisition is a strategy where a company purchases another company at a different stage of the supply chain, either upstream or downstream, to enhance its operational efficiency and control over resources. This approach helps businesses consolidate their market position, reduce costs, and improve the quality of service or product delivery. In the context of the hospitality industry, vertical acquisition allows companies to manage their supply chains more effectively by integrating suppliers, distributors, or even service providers.
congrats on reading the definition of Vertical Acquisition. now let's actually learn it.