Strategic Management: Formulation and Implementation

Breadth Of Integrated Activities

The breadth of integrated activities is the number of tasks that firms perform in-house. Traditional concepts of vertical integration did not address the number of integrated activities that firms might undertake. Figure 8-2 contrasts the old view, represented by firm A, with examples of the expanded concept of vertical integration represented by firms B and C.

Stages Of Integrated Activities

Figure 8-2 shows that firm A has more stages that firms B or C, because its activities extend from ultra-raw materials to retail outlets, but firm C is engaged in a greater number of steps in the vertical chain.