What does vertical integration primarily focus on?

Vertical integration primarily focuses on utilizing suppliers or distributors to enhance control over the supply chain. By integrating vertically, a company can either acquire controlling interest in its suppliers (backward integration) or take over its distribution channels (forward integration). This strategy allows a business to reduce costs, improve efficiency, and gain greater control over its operations and product quality. By managing the process from raw materials to end consumers, a company can create a more seamless operation, respond more quickly to market changes, and potentially increase profitability.

In contrast, the other options relate to different business strategies such as horizontal integration, which involves combining businesses within the same sector or joining two firms, and diversification into unrelated businesses, which is not the focus of vertical integration.