Strategic Management: Formulation and Implementation

Formulating Vertical Integration Strategies

Vertical integration has been an important managerial innovation and a necessary technological step in developing certain industries, but it may not be appropriate in the same form under all circumstances.

As any other crucial decisions that has significant strategic importance, vertical integration is affected by complex trade-offs. All of the benefits that support a movement toward increased vertical integration have to balanced against potential costs.

The Dimension Of Vertical Strategy

In any vertical integration strategy, conscious (or unconscious) decisions are made regarding: