Vertical integration involves companies forming partnerships based on buying and selling relationships. It's not as common as when competitors join forces, but it still happens a lot. Being vertically integrated can help companies reduce risks and grow globally. Companies need to regularly check if their structure is working well and if each part of their business is making money. When one big company becomes vertically integrated, its competitors might feel pressured to do the same. But sometimes, this is just a quick reaction and not a smart move.