In short, it depends. A number of variables can determine the profitability of a vertical integration strategy. Examples of successful and failed vertical integration abound. In addition, there are different approaches and degrees of vertical integration possible. A vertical integration strategy can deliver advantages, including greater economies of scale, lower variable production costs, decreased logistics costs and quality concerns and — yes — increased profitability. However, full vertical integration takes time, requires significant capital investment and can result in increased complexity and decreased flexibility. Companies must consider the advantages and costs of a specific vertical integration approach carefully. Some companies are able to secure significant competitive advantage via vertical integration, while others may determine that the costs of integration outweigh its benefits.