Tim Ferriss discusses the concept of vertical integration with Elan Lee in the episode, "Co-Creator of Exploding Kittens — How to Raise Millions on Kickstarter". Lee explains how his company transitioned from outsourcing all aspects of game production to building in-house expertise across various functions including sales, marketing, production, logistics, distribution, accounting, and legal. This strategy allowed them to innovate and directly negotiate with retailers like Target and Walmart, making unique decisions that set them apart from competitors 1.

By becoming an end-to-end house, they gained control over manufacturing processes and marketing strategies, which is the essence of vertical integration. This approach enabled them to have unique conversations with retailers about product presentation and marketing efforts, which would be challenging with multiple external dependencies 1.