Unformatted text preview: r stages Pros/Cons of Vertical Integration
y See Table 14.1 on p. 361
Designing Vertical Relationships
y Which activities should we undertake internally, and which should we outsource?
y How should we design our vertical arrangements with both external/internal suppliers/buyers?
Difference types of Vertical Relationships
y Types are classified according to 2 characteristics (See Fig. 14.4 on p. 362):
o Extent to which buyer/seller commit resources to the relationship
o Formality of the relationship
y Spot contracts
y Long-term contracts
y Vendor partnerships
y Hybrid arrangements
Choosing between Alternative Vertical Relationships
y Resources, capabilities, strategy what is the company good at?...
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- Fall '13
- transaction costs, Vertical Relationships