Channel Management (Fach) / Take Aways (Lektion)

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Vorderseite Topic #8: Vertical Integration
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  • Nature of vertical integration: scope of the firm
  • Historical development
  • Reasons to vertically integrat
    • Strategic considerations => by and large competitor-focussed
  • Transaction cost theory
    • Specialized assets required (specificity)
    • Frequent exchange
    • Degree of uncertainty around exchange
      • Opportunism
    • Governance as a continuum
  • Contemporary VI strategies (by and large customer-focussed)
    • Value migration (downstream)
    • Commoditization of products
    • Customers demand integrated solutions
    • Get end customer access

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