Identify what concept is represented in the following scenario, and explain why.
A California company, American Apparel, has three knitting facilities in Southern California that knit spools of yarn into fabric and dye the fabric. Then, three factories in Southern California cut, sew, and package T-shirts. At the same time, the creative team markets the T-shirts, and the shipping and retail departments handle the distribution of T-shirts to more than 280 stores.