Weighing the Pros and Cons of Vertical Integration
♦Can vertical integration enhance the performance of strategy-critical activities in ways that lower cost, build expertise, protect proprietary know-how, or increase differentiation?
♦What is the impact of vertical integration on investment costs, flexibility and response times, and the administrative costs of coordinating operations across more vertical chain activities?
♦How difficult it will be for the company to acquire the set of skills and capabilities needed to operate in another stage of the vertical chain.