Published by:
MIT Sloan School of Management
Length: 16 pages
Share a link:
https://casecent.re/p/6622
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Vertical integration is a risky strategy - complex, expensive, and hard to reverse. Yet some companies jump into it without an adequate analysis of the risks. The authors have developed a framework to help managers decide when it''s useful to vertically integrate and when it''s not. They examine four common reasons to integrate and warn managers against a number of other, spurious reasons. Their primary advice: don''t vertically integrate unless it is absolutely necessary to create or protect value.
About
Abstract
Vertical integration is a risky strategy - complex, expensive, and hard to reverse. Yet some companies jump into it without an adequate analysis of the risks. The authors have developed a framework to help managers decide when it''s useful to vertically integrate and when it''s not. They examine four common reasons to integrate and warn managers against a number of other, spurious reasons. Their primary advice: don''t vertically integrate unless it is absolutely necessary to create or protect value.