3.Particular Strategic Issues in Forward Integration
⑴IMPROVED ABILITY TO
DIFFERENTIATE ⑵ACCESS TO DISTRIBUTION CHANNELS ⑶BETTER ACCESS TO MARKET INFORMATION ⑷HIGHER PRICE REALIZATION
⑵TAP INTO TECHNOLOGY ⑶ASSURE SUPPLY AND /OR DEMAND
⑷OFFSET BARGAINING POWER AND
INPUT COST DISTORTIONS ⑸ENHANCED ABILITY TO DIFFERENTIATE ⑹ELEVATE ENTRY AND MOBILITY BARRIERS ⑺ENTER A HIGHER RETURN BUSINESS ⑻DEFEND AGAINST FORECLOSURE
2.Strategic Costs of Vertical Integration
⑴COST OF OVERCOMING MOBIபைடு நூலகம்ITY
BARRIERS ⑵INCREASED OPERATING LEVERAGE ⑶REDUCED FLEXIBILITY TO CHANGE PARTNERS ⑷HIGHER OVERALL EXIT BARRIERS
4.Particular Strategic Issues in Backward Integration
⑴PROPRIETARY KNOWLEDGE ⑵DIFFERENTIATION
5.Contracts, Tapered Integration and Quasi-Integration
⑴CONTRACTS AND THE ECONOMIES OF
⑸CAPITAL INVESTMENT REQUIREMENTS ⑹FORECLOSURE OF ACCESS TO
SUPPLIER OR CONSUMER RESEACH AND /OR KNOW-HOW ⑺MAITAINING BALANCE ⑻DULLED INCENTIVES ⑼DIFFERING MANAGERIAL REQUIREMENTS
• Vertical integration is the combination of technologically distinct production, distribution, selling, and/or other economic processes within the confines of a single firm. As such, it represents a decision by the firm to utilize internal or administrative transactions rather than market transactions to accomplish its economic purposes. • In theory, all the functions we now expect a corporation to perform could be performed by a consortium of independent economic entities, each contracting with a central coordinator, which itself need be little more than a desk and a single manager.
1.Strategic Benefits of Vertical Integration
⑴ECONOMIES OF INTEGRATION
– – – – – ①Economies of Combined Operations. ②Economies of Internal Control and Coordination ③Economies of Information. ④Economies of Avoiding the market. ⑤Economies of Stable Relationships.
纵向一体化的战略分析
1.Strategic Benefits of Vertical Integration 2.Strategic Costs of Vertical Integration 3.Particular Strategic Issues in Forward Integration 4.Particular Strategic Issues in Backward Integration 5.Contracts, Tapered Integration and Quasi-Integration 6.Some Illusions in Vertical Integration Decisions
INTEGRATION – It is essential to recognize the possibility that some economies of integration could be gained by the right type of long-term or even short-term contract between independent firms. ⑵TAPERED INTEGRATION – Tapered integration is partial integration backward or forward, the firm purchasing the rest of its needs on the open market.
Advantages: ①Tapered integration results in less elevation in fixed costs than full