Vertical Integration

- Used business strategy called vertical integration, which a company would control every stage of industrial process, from mining the raw material to transporting to product.

1. If you were on the Dynacorp task force, what would be your first choice for an alternative design? What would be your second choice?.

Vertical integration is a concept in which a company develops or acquires production units for outputs which are

3. What does your strategic group map of this industry look like? How attractively is Netflix positioned on the map? Why?

IT. Running global networks with standardized, cost efficient and innovative services is only possible via state-of-the-art IT platforms. The industry is currently investing heavily in this area.

Throughout history many people used unfair ways to improve their lives over others. In the late 18th century and early 19th century the use of vertical integration became more popular and used by large business owners. Vertical integration is when a company attempts to own all parts of the business by owning every piece that goes into the product being created. One large business owner who was a robber baron and particularly used vertical integration was Andrew Carnegie. He used these tactics as a way to improve his business and wealth. Under the table deals, allowed businessmen’s company’s to flourish, resulting in them becoming wealthy,

Vertical integration is when one firm joins with another at a different stage of the same production process. Forward Vertical is when the other firm is at a later stage and Backward Vertical is when the other firm is at an earlier stage. Vertical integration as a whole allows for a firm to control key stages of the production process; guarantees access to a market; and gains control of supplies. Companies such as Zara and American Apparel are vertically integrated, especially at key stages of

Vertical integration- a company controlled all parts of production from raw mats to the finished goods

Horizontal integration involves buying out other companies and taking over one single step of an industrial process. It establishes a monopoly because, with horizontal integration, everyone must go the company that has monopolized that step.

Vertical integration is a business growth strategy for economics of scale. It is typified by one firm engaged in different parts of production example; growing raw materials, manufacturing, transporting, marketing, and/or retailing to expand business in existing market for the firm. It can function in two directions both forward integration and backward integration.

Nevertheless, the vertical value chain created by Aldi benefits the company’s corporate strategy. To be a local supplier,

are made through gift shops independently owned, then it doesn't now think its vertically integrated, by cross-selling directly to the consumer through their website. It must include their plans to enter the field of electronic sales, and the potential losses in sales through the current means of distribution (Ferreira et al., 2012). Results unprofitable; a company may not achieve the new expectations of their transaction gains that have developed, and it is often not possible acquisitions error transform into a source of profit through work harder (Walker, and Weber, 2014). Vertical integration may hurts the company when technology is developing very quickly and become available since then become the company is forced to re-invest in new technology

1. When Cheryl Smith, the new CIO, arrived at WestJet she was asked by the CEO to advise whether the company had adequate IT or not. What aspects did she assess? What is your view on the strengths and weaknesses of this assessment? What is your view on her resulting priorities?

Backward integration is a type of vertical integration in which a company takes control over its suppliers. It is a form of acquisition of the intermediary players involved in supplying the raw materials used in the production process of the firm. Raw materials, intermediate manufacturing and assembly are controlled by the firm whereas distribution to the end customer is done by a third party company. In this way, company increases production efficiency and gains a competitive advantage by lowering its production cost.

Carlzon who saw the company through the worst of challenges during the 1980s enabled the success of the airline. The CEO maintained that businesspersons had to travel both in the good and bad times. The motivation behind the vertical integrations a management strategy by the airline stemmed from the need to increase its share in the air travel and leisure market. This was after the realization that the market trends at the time were very competitive hence there was a need to use proper management strategies so that the airline would stay in the market.