Open AccessA Case Series Of Todays Vertical Integration
Author(s) -
Steven R. Clinton,
Dean R. Manna,
Gayle Marco
Publication year - 2008
Publication title -
journal of business case studies
Language(s) - English
Resource type - Journals
eISSN - 2157-8826
pISSN - 1555-3353
DOI - 10.19030/jbcs.v4i7.4795
Subject(s) - outsourcing , vertical integration , industrial organization , argument (complex analysis) , core competency , business , flourishing , productivity , offshoring , competitive advantage , core (optical fiber) , economics , marketing , computer science , psychology , telecommunications , biochemistry , chemistry , psychotherapist , macroeconomics
In todays business environment outsourcing attracts considerable attention. The general rationale is that anything that is not a core competency of the firm is a candidate for outsourcing. The touted benefits are generally considered to be substantial cost savings, better productivity and more strategic use of scarce resources within the firm. In contrast, vertical integration has to some degree come to be viewed somewhat negatively the argument being that no single firm in todays competitive environment can possibly or should manage an extended enterprise. But as this series of case studies show, some firms are flourishing by going against prevailing logic and vertically integrating their supply chains.