Vertical integration is a risky strategy - a complex, expensive, and difficult to reverse. However, some companies are jumping into it without adequate risk analysis. The authors have developed a framework to help managers decide when it is useful for vertical integration, and when it is not. They study four common reasons for integration and alert managers to a number of other false reasons. Their main advice:. No vertical integration, if it is absolutely necessary to establish or protect the value of "Hide
by John Stuckey, David White Source: MIT Sloan Management Review 15 pages. Publication Date: April 1, 1993. Prod. #: SMR006-PDF-ENG
Related Case Solutions & Analyses:
Understanding and Breaking the Rules of Business: Toward a Systematic Four-Step Process
Loyalty Myths
Gary Rodkin at Pepsi-Cola North America (B)
Gazprom and Hermitage Capital: Shareholder Activism in Russia
The Rise and Fall of Iridium
LVMH: Managing the multi brand conglomerate
Back to the Roots Ventures (BTTR)
Chandpur Enterprises Limited, Steel Division
St. Louis: Inner City Economic Development, Spanish Version
Competitive Environmental Strategies: When Does It Pay to Be Green?
