Vertical integration refers to any moves that include different levels of the chain. It could involve merging or buying out a link ahead of or before your organization, or possibly developing your own capabilities for handling the entire supply chain, front to back. For example, if the CPU manufacturer mentioned earlier also purchased a smartphone product development firm, they would control more levels of their supply chain - the major parts and the product. This type of acquisition could gain the firm greater control over their costs, net them a larger share of profits, and reduce waste and time spent in production.