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Vertical Integration

Creator
Creator
Seonglae ChoSeonglae Cho
Created
Created
2020 Jul 27 0:35
Editor
Edited
Edited
2026 Jun 12 17:44
Refs
Refs
Companies like Apple and Microsoft integrate from hardware to software, or pursue related business areas
Vertical integration means build systems–CI–deployment–version control–IDE–code search–test runners are tightly connected to provide a unified workflow
Early startups are rushed with
MVP
and lack time/resources to build vertical integration. In open source, collaboration issues prevent it.
 
 

Horizontal Integration

Acquiring companies in fields unrelated to the current business
Often called octopus-style expansion
 
 

AI era moat

Power in the Age of Intelligence
Or, strategy for those who plan to benefit from abundance
Power in the Age of Intelligence
Atoms are Cheap, Process is Pricey
What SpaceX teaches us about building hard things.
Atoms are Cheap, Process is Pricey
Vertical Integration is the Only Thing That Matters
The utility of a tool is limited by the amount of the system it understands
수직계열화와 수평계열화에 대해서 알아봅시다.
수직계열화는 한 제품에 대한 생산부터 판매까지에 필요한 회사들을 계열사로 만드는 것이다. 예를 들어서 자동차에 관련해서 수직계열화를 했다는 의미는 자동자용품을 만드는 회사, 자동자부품을 만드는 회사, 자동차를 조립하는 회사, 자동차를 판매 및 수출하는 회사 등 자동차의 제작 및 판매까지의 단계에서 각각의 역할을 하는 회사들을 인수 or 자회사 or 계열사로 만들어다는 뜻이다.
수직계열화와 수평계열화에 대해서 알아봅시다.
Nicolas Bustamante on Twitter / X
https://t.co/v7sot4WCI2— Nicolas Bustamante (@nicbstme) February 16, 2026
 

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