Vertical Integration Strategies

In microeconomics and management, vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. (wikipedia)

 Amazon's integration into hardware by producing Kindle Fire tablets is a step for vertical integration.  Kindle fire uses touch screen control-integrated source from the previously from new supplier. that shows the growing demand of new suppliers to reduce cost. This is an example of vertical integration strategy by Amazon.