Vertical integration, outsourcing and the business buying process. Many companies that were formerly vertically integrated, producing their

❼ Vertical integration, outsourcing and the business buying process. Many companies that were formerly vertically integrated, producing their own raw materials or parts, are now using outside suppliers to produce them instead (outsourcing). Are there any longer-term dangers in outsourcing?

What if the company outsources to the same company that produces for its closest competitor? What are your thoughts on how outsourcing and vertical integration change the business buying process? What implications do you foresee for marketers? (Learning Objective 5) (AACSB: Reflective Thinking)