Corporate strategy is the choice of direction of the firm and the management of its business or product portfolio. Discuss different levels of vertical integration (vertical integration continuum).
Corporate strategy is the choice of direction of the firm and the management of its business or product portfolio. Discuss different levels of vertical integration (vertical integration continuum).
Vertical integration is a business approach that allows a corporation to streamline its operations by assuming full control of various stages of the manufacturing process rather than depending on outside contractors or suppliers. Instead of outsourcing suppliers, manufacturers, distributors, or retail outlets, a corporation might achieve vertical integration by acquiring or forming its own. Vertical integration is used by a corporation that purchases its supply of raw materials for a product, as well as the tools needed to manufacture and transport that product. The purpose of this strategy is to own as much of the supply chain as feasible to reduce transaction costs generally associated with outsourcing.
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