Strategic Management: Formulation and Implementation

Vertical Integration Strategy Alternatives

A study by Kathryn Harrigan reveals several alternatives that encompass the dimensions of vertical integration strategy. These alternatives are:

Nonintegration

Strategies for attaining materials and markets with no internal transfers and no ownership are like contracts. They are especially attractive when firms are reluctant to buy specialized assets, need to lower breakeven points because of underdeveloped demand, or can arrange delivery schedules with suppliers (or distributors) as though they were extensions of the firm's assets.