companies control increasingly small part of the value chain
triggered by dynamism and risk (e.g. GM had deep vertical integration, but today
risk of developing all components by itself is too great (investment risk)
also made possible by more readily available specialist expertise in the market
place (competent suppliers)
formerly: no value adding activities bought from suppliers, just low-value items,
raw materials
that means not only vertical integraiton in production decreases but also in R&D
(component R&D done by suppliers)