PENINGKATAN PROFITABILITAS MELALUI INTEGRASI VERTIKAL
Profitability describes the ability of the company to generate profits by
using all of its capital. Profitability also has a significant meaning in maintaining
long-term company viability For that use vertical integration strategy. Vertical
integration strategies require companies to exercise more control over their
distributors, suppliers and/or competitors through mergers, acquisitions, or
making their own. This article aims to examine the relationship between vertical
integration with profitability by looking at differences in the measurement of the
vertical integration index used. This article is written with a study and
exploratory approach to research results that have been done by experts on
vertical integration associated with profitability, and the use of various methods
of measuring vertical integration and their impact on profitability.
Based on the studies it has been found that the vertical integration
relationship with profitability is highly dependent on the vertical integration index
used. However, there is no agreement on the measurement of vertical integration
indices that can be shared. This problem causes the relationship of vertical
integration with profitability is still a debate.
Keyword: Vertical integration, profitability, index value added to sales (VA/S),
index Vertical Industry Connection (VIC).