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IA-INTEGRATIVE STRATEGIES - STUDENT NAME SURAYA BT ZAINOL...

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STUDENT NAME : SURAYA BT ZAINOL STUDENT ID : 62362115007 STUDENT EMAIL: [email protected] INTEGRATION STRATEGY ABSTRACT This paper presents to identify the strategic activities involve in vertical integration and horizontal integration. This support consist the description types of integration strategy models and a guideline based to strategist when to apply the strategy and the benefit when a company use this strategy to help the leadership or strategist define his or her own strategy. Besides, the purpose of this article is to examine the major determinants for adopting virtual integration strategy in organizations. The article also addresses the competitive implications of adopting virtual integration strategy. The article proposes a theoretical model that shows the major internal as well as external factors for adopting virtual integration strategy. In addition, the article also presents real world case applied by this strategy to explain the adoption process. Keywords: vertical integration, horizontal integration, integration strategy 1. INTRODUCTION
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Do companies producing high-value capital goods, who build up capabilities for integrating services in order to provide customer centric solutions for their customers, become more competitive than those companies who fail to build up such capabilities? The question is proposed by Hobday et al. (2005, p. 1138) as they conclude that systems integration is a capability at the core of the strategic management of modern high-technology corporations. This implies that systems integration should not be seen as an activity which merely includes technical tasks (Prencipe, 2003) but instead it should be understood as an activity including the principal technical, strategic and organizational capabilities involved in the main stages of the production of different systems. Thus, enabling the systems supplying companies to bundle together their traditional products and software with services designed to provide customers with long-term solutions to their problems (Hobday et al., 2005, p. 1136). In other words, there is a customer orientation in the solutions business, i.e. the customer driven performance is emphasized. From this it follows that companies delivering solutions to their customers are forced to organize their internal and external activities in a way that enhances the customer driven thinking (Flowers, 2007; Davies et al., 2007; Davies et al., 2006; Davies, 2004). In the context of this study, systems integration is regarded as both the strategic and operational capabilities project delivering companies need in order to master and achieve at the same time as they are developing a project value-chain. Systems integration capabilities become crucial due to the complexity and uncertainty that originates from a high number of different resources and parameters typically interacting in the different project phases, and their sub-processes which work in parallel – resembling the concurrent engineering approach. All organisations face the strategic challenge of achieving sustained profitable growth. To meet this challenge,
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