Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Forward vertical integration - integration strategies -corporate level strategies Strategic Management - Manu Melwin Joy

When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.

Related Books

Free with a 30 day trial from Scribd

See all
  • Be the first to comment

Forward vertical integration - integration strategies -corporate level strategies Strategic Management - Manu Melwin Joy

  1. 1. Forward Vertical Integration - Integration strategies Corporate Level Strategies
  2. 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
  3. 3. Integration strategies
  4. 4. Integration strategies • It is done where the company attempts to widen the scope of its business definition in such a manner that it results in serving the same set of customers. The alternative technology of the business undergoes a change.
  5. 5. Integration strategies • It is combing activities related to the present activity of a firm. Such a combination may be done through value chain. A value chain is a set of interrelated activity performed by an organization right from the procurement of basic raw materials down to the marketing of finished products to the ultimate customers.
  6. 6. Vertical Integration • When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.
  7. 7. Examples of Vertical Integration • Oil companies like ConocoPhillips can be involved in all stages of the value chain, including crude oil exploration, drilling for oil, shipping oil to refineries, refining crude oil into products such as gasoline, distributing fuel to gas stations, and operating gas stations.
  8. 8. Forward Vertical Integration • When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.
  9. 9. Examples of Forward Integration • Disney has pursued forward vertical integration by operating more than three hundred retail stores that sell merchandise based on Disney’s characters and movies. This allows Disney to capture profits that would otherwise be enjoyed by another store.

    Be the first to comment

    Login to see the comments

  • TsheringDolkar2

    Sep. 14, 2015
  • RahinaTasnimShifa

    Jul. 16, 2017
  • SadiqueKaripol

    Apr. 24, 2018
  • ChetanVisrolia

    Oct. 9, 2019
  • UbaidUrrahman34

    Nov. 19, 2019

When pursuing a vertical integration strategy, a firm gets involved in new portions of the value chain. This approach can be very attractive when a firm’s suppliers or buyers have too much power over the firm and are becoming increasingly profitable at the firm’s expense.

Views

Total views

5,530

On Slideshare

0

From embeds

0

Number of embeds

17

Actions

Downloads

84

Shares

0

Comments

0

Likes

5

×