Vertical Intergration

If you have a laptop then you’re in the connected economy, and if you’re in the connected economy, you have access to the very same tools that every other big company has, you have access to the very same markets that every other big company has, and you have access to the same resources that big companies have.

But, what that truly means is that you now own the means of production, so there’s no middle man.

Value City Furniture was founded on the belief that the best way to deliver quality furniture at a great value to customers was to buy the factories that built the furniture, which in turn, would cut out middleman cost. In other words, the company started taking steps toward becoming vertically integrated. In the 1950s, the CEO  Alvin Schottenstein purchased the company’s first manufacturing plant. In the 1960s, he purchased upholstery manufacturer Kroehler furniture. And in the 1970s, he expanded the Columbus distribution center to 200,000 square feet  to support an expanding chain of 28 stores in 4 states.

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