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Stages proscons of vertical integration y see table

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Unformatted text preview: r stages Pros/Cons of Vertical Integration y See Table 14.1 on p. 361 Designing Vertical Relationships Two questions: 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 Franchising y Relationships y Hybrid arrangements Choosing between Alternative Vertical Relationships y Resources, capabilities, strategy what is the company good at?...
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