Vertical Integration can be a concept that many, outside the business world, may not have any familiarity with what it entails.  However, as we grow as a society and are becoming more health conscious, vertical integration is a process that is becoming more common to ensure quality and authenticity among different products. Korea Ginseng Corp is has implemented their own vertical integration system that ensures an authentic, high-quality, trusted ginseng supplements, that removes the middle-man from the integration process.  Without the middle-man within the integration process, there is no question as to the quality of the ingredients that are utilized to create and process Korean Red Ginseng. 

Vertical Integration Definition: 

According to the journal Business Models & Organizational Structure, a vertically integrated business model is defined as a business model that, “means that you consolidate multiple steps in the typical distribution process. Instead of operating solely as a manufacturer, distributor or retailer, a vertically integrated company performs tasks commonly carried out by suppliers or trade buyers” (Kokemuller, 2020). 

This is a great example of how the Korea Ginseng Corp has utilized its business to create a standard for the Korean Red Ginseng product and its authenticity.  Korea Ginseng Corp works hard to cultivate, grow, harvest and process ginseng so that it can bring to the public an authentic and pure product that has so many medicinal supportive benefits to offer those who are health conscious. 

Benefits to Korea Ginseng Corp’s Vertical Integration: 

Vertical integration is important because it establishes authenticity.  It allows KGC to maintain costs, while also overseeing the product all the way from growth to consumption.  This allows Korea Ginseng Corp to ensure that only the highest quality of products are utilized in their ginseng supplements.  It also means that the public can trust the quality of Korean Red Ginseng and know that for decades it has offered superior quality products compared to its competitors. 

Having vertical integration also means that there is no middle-man that Korea Ginseng Corp has to go through to provide the consumer with quality Korean Red Ginseng.  Korea Ginseng Corp is involved in every step of the Korean Red Ginseng process from farming to the consumers.  This also allows reduces the final costs from the product, that would otherwise have to be calculated in for the shelf cost. 

Korea Ginseng Corp has created products with superior standards for centuries.  It is the number one most trusted and reliable ginseng product in Asia.  According to the Korea Ginseng Corp, because of this foundation, we strive to not only be the global leader in ginseng, but also leader of the health food business and pioneer of health-oriented service business. 

Korea Ginseng Corp ensures that Korean Red Ginseng is natural and only utilizes farmlands that have been selected after extensive and rigorous evaluations.  Korean Red Ginseng is also cultivated by climate and soil conditions.  Korea Ginseng Corp has developed the technology to process, store and transport Korean Red Ginseng for all to use. 

Conclusion:

 Korean Red Ginseng has been voted by many different regulation agencies to be a superior product of ginseng on the market today.  The difference between Korea Ginseng Corp’s brand CheongKwanJang, and other ginseng manufactures is that the Korea Ginseng Corp is involved in every step of the process of growing, cultivating, harvesting and processing ginseng supplements.  Because of this vertical integration system implemented by Korea Ginseng Corp, Korean Red Ginseng is superior in its purity and authenticity.  It is truly the best Korean Red Ginseng available. 

 ---

Works Cited: 

Kokemuller, N. (2020).  Business Models & Organizational Structure.  What is a Vertically Integrated Business Model?  https://smallbusiness.chron.com/vertically-integrated-business-model-68292.html