SmoothNTasty, Inc., is a leading producer of high-quality Greek yogurt. The company originally maintained its own dairy farms as the sole source of milk used in its yogurt products. It has recently sold all of its interests in these dairy farms and now focuses on the production of yogurt. The value chain of which SmoothNTasty is a part has experienced:

Question

Quizplus · Accepted Answer

De-integration occurs when a company reduces its level of control or ownership over its supply chain. By selling its dairy farms and focusing solely on yogurt production, SmoothNTasty has moved from a vertically integrated model to one that is less integrated, hence de-integration.