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Vertical integration is so passé. Now you've got two problems, you'll end up competing with your other wood suppliersor supply your furniture competitors. Using
by SixSigma 11y ago
Vertical integration is so passé. Now you've got two problems, you'll end up competing with your other wood suppliersor supply your furniture competitors. Using the profit from your core business to prop up the weak one; whichever way round that ends up being.
The world just spent the last decade de-integrating.
- GFischer 11y agoI would agree with you if it were a smaller company, but at IKEA's volume, it does make sense. Also, it's "mainstream" again, with Apple as the trendsetter. http://www.strategy-business.com/blog/Vertical-Integration-2-0-An-Old-Strategy-Makes-a-Comeback?gko=41fe1 http://www.strategy-business.com/blog/Vertical-Integration-2... http://business.time.com/2012/03/16/how-apple-made-vertical-integration-hot-again-too-hot-maybe/ http://business.time.com/2012/03/16/how-apple-made-vertical-...
- toomuchtodo 11y agoDelta Airlines owns a refinery, Tesla is building their own Battery factory; Vertical integration is alive and well.
- hessenwolf 11y agoTell that to the supply line risk manager at Boeing or Airbus. They might look like they are not vertically integrated, but the level of control they have muddies the water.
- SixSigma 11y agoControl is not ownership, many supply lines have SLAs with very tight KPIs. Boeing and Airbus do not build their own engines for instance.