When an organisation acquires the activities of its outputs, e.g. manufacturer into distribution and transport. Functional organisation structure A structure in which the different functions of the organisation, such as finance and operations, report to the chief executive. Used in organisations with a limited product range.
Company's seeks ownership or increased control of its distribution system.
A type of vertical marketing in which a manufacturer purchases wholesalers or retailers that handle its products.
A form of vertical integration that involves expanding a business so it directly distributes its products.