A corporate vertical marketing system (VMS) is a structure that combines the successive stages of production and distribution under a single owner. This means that channel leadership is achieved through common ownership at all levels of the chain – from production to retail.
The main advantage of a corporate VMS is complete control and the elimination of channel conflicts, since all units work under a common leadership and have common goals. This model provides maximum coordination, but requires significant capital investment and may be less flexible than contractual systems.
