Olivia's Olive Oil Company and Vertical Integration

Olivia's Olive Oil Company and Vertical Integration

Olivia's, an olive oil company, grows and harvests olives, makes olive oil, and distributes its olive oil to its retail shop. Olivia's is an example of vertical integration.

Vertical integration is a business strategy where a company controls multiple stages of the same production or supply process. In the case of Olivia's, it grows and harvests its own olives, makes its own olive oil, and then sells the product in its own retail shop. By doing this, Olivia's is able to control and coordinate the entire process from production to distribution, which can result in cost savings, improved quality control, and increased efficiencies.