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this post was submitted on 02 Jan 2026
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Yes. Vertical integration means a lot more than what you described. In a nutshell it can be described as "A big upfront cost that is cheaper in the long run." The basic example would go something like this: you make beef jerky. You buy the beef, you rent a kitchen, make the jerky, pay a company for packaging, pay a company to ship it to stores, etc. Then you save up and buy a facility to make the jerky. Then you save up and buy a packaging machine. Then you save up and buy some shipping trucks. Then you save up and buy a farm to raise cattle, etc. That's vertical integration.