Question
You have become the owner-manager of a small local bubble tea seller that has outlets in 10 prime shopping-center locations across Singapore. Given the structure
You have become the owner-manager of a small local bubble tea seller that has outlets in 10 prime shopping-center locations across Singapore. Given the structure of this market discussed in question 3, you are considering vertical and horizontal integration. Using the theory of the optimal boundary of the firm, discuss the make-or-buy decision as well as the scope for horizontal integration and diversification of your firm. What stages of the vertical chain should you consider conducting inhouse? What other horizontal markets may you integrate into?
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