Bergerac Systems the Challenge of Backward Integration Essay

4190 Words Nov 23rd, 2012 17 Pages
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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.

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The customer feedback was fresh in Wyckoff’s mind as he returned to the proposal he had started reviewing that morning. It summarized the “make vs. buy” analysis for OmniVue cartridges conducted by his director of
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veterinary spending). Several factors drove this growth. First, pet ownership had increased steadily since the late 1980s, rising 6 points to more than 62% of households. Nearly 73 million households in the U.S. had one or more pets, and the average number of pets per household had increased. Collectively, these households
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HBS Professor David A. Garvin and writer Sunru Yong prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration.
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