Bergerac Systems Case.docx - Bergerac Systems Case Should...

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Bergerac Systems Case: Should Bergerac Systems backward integrate? Why or why not? If they did decide on backward integration, how should they attempt this? Please explain. Bergerac Systems is a company specializing on in-house lab equipment for veterinary clinics. Their product (OmniVue) enables point of care capabilities for Veterinarians to run a variety of tests, which deliver results in less than 10 minutes. This allowed Veterinarians to make diagnostics on the spot and reduce wait times for pet owners. Similarly, this was a win-win for both the practitioners and pet owners, as by testing on-site they were able to capture the full revenue of the service and not redirect it. As for the pet owners, the reduced diagnostic time saved them time and money and in critical situations even saved the life of their pets. Bergerac Systems competitive advantage came as a result of being simple to use, while also providing highly accurate test results. Additionally, by occupying only 1 square foot of space, this allowed practices

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