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Vertical Integration - At least 2 pages In what stages of the industry value chain should the firm participate? What percentage of the firm's sales
Vertical Integration - At least 2 pages In what stages of the industry value chain should the firm participate? What percentage of the firm's sales is generated within the firm's boundaries? The degree of vertical integration tends to correspond to the number of stages in the industry value chain in which a firm directly participates. There are two types of vertical integration along the industry value chain; does the company pursue both types of vertical integration? Provide clear examples of both types of vertical integration. Explain and analyze the logics or the reasons that determine the boundaries of the firm (vertical integration strategy). Why did the company vertically integrate? Is vertical integration driven by high transaction costs, need for coordination, or leveraging existing capabilities (If a firm possesses valuable, rare, and costly-to-imitate resources in a business activity, it should vertically integrate into that activity)? Does the company outsource? What are the activities the company outsources? Why did the company outsource each activity? What are the advantages of the outsourcing? What are the risks of outsourcing
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