What type of integration involves a company controlling every stage of the industrial process?

Vertical integration refers to a strategy where a company expands its operations by controlling every stage of the industrial process, from raw materials to production to distribution. This approach allows a business to increase efficiency, reduce costs, and improve access to resources and markets. By having control over multiple stages, a company can streamline its processes, avoid supply chain disruptions, and maintain higher profit margins.

For example, a steel manufacturer that owns iron ore mines and transportation networks is practicing vertical integration. This strategy contrasts with horizontal integration, where a company expands its reach by acquiring or merging with competitors at the same stage of production, thereby increasing market share. Conglomerate integration involves diversifying by acquiring businesses in different industries, while monopoly integration typically refers to a market structure where a single firm dominates the market. Vertical integration specifically emphasizes the control over the supply chain, which is why it is the correct choice.