Which term describes the strategy of acquiring and consolidating value chain elements?

The strategy of acquiring and consolidating value chain elements is best described as vertical integration. This approach involves a company taking control of several stages in its supply chain, either by acquiring suppliers (backward integration) or distributors and retailers (forward integration). By doing so, an organization can enhance both its operational efficiency and market control, allowing for streamlined processes, reduced costs, and improved coordination across its value chain.

Vertical integration can directly impact a company's ability to respond swiftly to market changes, reduce dependency on external entities, and enhance overall competitiveness in their industry. Thus, it represents a strategic move to strengthen a company's position by consolidating various functions that contribute to the production and delivery of its products or services.