Bergerac Systems: The Challenge of Backward Integration Abstract Veterinary expenditure has been on an increasing trend due to the increase in pet ownership in the United States. Bergerac is a company producing equipments used for testing pet patients in the veterinarian clinics. Omnivue is one of the most successful equipments produced by the company, which is priced at a competitive rate to attract lower and middle sized veterinarians. The production of Omnivue involves the use of plastics and
rP os t 4381 DECEMBER 14, 2011 DAVID A. GARVIN SUNRU YONG Introduction op yo Bergerac Systems: The Challenge of Backward Integration In July 2010, Ian Wyckoff, CEO of Bergerac Systems, scribbled a few notes about his latest meeting with a group of veterinarians. These were his customers, and they provided direct feedback on their latest experiences with Bergerac’s diagnostic instruments for animal care. The feedback was always valuable, although on this visit it was not entirely positive.
Introduction Bergerac System is a company that produces diagnostic instruments for animal care. In July 2010, Ian Wyckoff, CEO of Bergerac System, got feedback from a group of veterinarians. The feedback reminded him that Bob McCarthy, the director of Bergerac’s Planning Department, had provided him an analysis report about OmniVue. The report discussed whether Bergerac should build a cartridge fabrication on their own or via external acquisition. Because Bergerac had a growing trend for demand