Question

What are the implications of vertically integrating to provide most all of the elements of value...

What are the implications of vertically integrating to provide most all of the elements of value for a product category that competes in a highly competitive technology market?

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Answer #1

For a segment competing in a high technology industry, the factors for vertically integrating to include most / all performance elements include continuity in control, production and strategic follow-through with potentially better fulfilment. Vertical integration might, however, create inflexibility. A value network may be capable of supplying the infrastructure required and adequate stability to respond to the drastic changes that arise in technology growth.

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