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  • Mantra For The Last Thirty Years: Outsource! Vertical Integration 2. Why Vertically Integrate Despite ?

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    Kavin Ur Frnd
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    Vertical integration involves controlling multiple stages of production within a single firm rather than outsourcing individual stages. While outsourcing was popular for decades, some firms are now vertically integrating again to gain more control over production, increase adaptability to changes, and obtain more market information and learning opportunities. In the past, integration involved total control over all stages, but it now often takes partial, virtual, or plural forms of governance rather than complete ownership.

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    Vertical Integration

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    Vertical Integration

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    Vertical integration involves controlling multiple stages of production within a single firm rather than outsourcing individual stages. While outsourcing was popular for decades, some firms are now vertically integrating again to gain more control over production, increase adaptability to changes, and obtain more market information and learning opportunities. In the past, integration involved total control over all stages, but it now often takes partial, virtual, or plural forms of governance rather than complete ownership.

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    33 views1 page

    Mantra For The Last Thirty Years: Outsource! Vertical Integration 2. Why Vertically Integrate Despite ?

    Uploaded by

    Kavin Ur Frnd
    Vertical integration involves controlling multiple stages of production within a single firm rather than outsourcing individual stages. While outsourcing was popular for decades, some firms are now vertically integrating again to gain more control over production, increase adaptability to changes, and obtain more market information and learning opportunities. In the past, integration involved total control over all stages, but it now often takes partial, virtual, or plural forms of governance rather than complete ownership.

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    Vertical Integration

    1. Mantra for the last thirty years: Outsource! =>


    Vertical disintegration
    2. Why Vertically Integrate despite?
    1. More Control
    2. More Adaptability
    3. More Market Information and Learning
    3. The pendulum has swung back recently
    4. Vertical Integration in the past and now
    1.
    2.

    Past: Total integration


    Now: Partial integration; Virtual Integration;
    Plural Form Governance

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