consumers manufacturing wholesaler retailer consumer Vertical integration- a firm performs more than one set of activities in the channel‚ as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores Backward integration- retailer performs some wholesaling and manufacturing activities‚ such as operating warehouses or designing private label merchandise Forward integration- manufacturer undertakes retailing and wholesaling activities
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apple.com/investor/ Growth: Citizenship: Survival: “Think Differently.” “Value Creation.” Current Position: Internal Analysis Stated/Implied Strategies Stated and Implied Strategies: □ Forward Integration □ Backward Integration □ Horizontal Integration □ Retrenchment X Diversification (Related/Unrelated) □ Competitive (Cost/Differentiation) Apple current strategic position is a differentiation strategy. Implications for functional areas: Management: Marketing:
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of having a new piece of clothing considered as ‘unique’ -that won’t be in the shop for more than 2 or 3 weeks. On short‚ as well the title of this paper states: ‘Responsive‚ High speed‚ Affordable fashion’. Stores are managed as small business‚ vertical communication and supply chain‚ so each manager knows exactly the demand and specific request‚ model and colour. This is a way of increasing efficiency‚ loyalty and customers satisfaction. Unlike the competitors‚ Zara spends a low percent of
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MRO capabilities worried European Commission regulators. This merger would be categorized as both vertical and horizontal. As a horizontal merger‚ the companies overlap within the “installed base” large regional aircraft segment. GE is a manufacturer‚ financer‚ servicer leaser and buyer of engines for this segment and Honeywell is a manufacturer and servicer of the same. Vertically‚ there is integration with GE Capital to finance a finished “bundle” of GE engine and Honeywell non-engine aerospace equipment
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to control supply interlocking directorate was when a company or group with control the board members of other companies to facilitate deals to benefit the baeking party horizontal integration is where a corporation controls all of one area of production to hold a monopoly on that stage of production vertical integration is when a company controls all stages of production of a product controlling every part and monopolizing prices 2. Interstate commerce act: designed to regulate the railroad companies
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1. What is Zara’s value Proposition? How does it differ from its Competitors? “Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)” (Grant‚ 2010‚ p.212) According to Clayton Christensen in order to process you Value Proposition you must look at the following (Harvard Business
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2.0 The Different Types of Business Activity By the end of this chapter‚ you should be able to: • Classify entities into primary‚ secondary and tertiary sectors • Explain features of public and private business • Understand the different forms of merger and take-over • Compare methods that measures the size of a business Levels of Economic Activity Stage Business Involved Primary Woodcutter Secondary Furniture Makers Tertiary Retailer Example – Stages in the production and sale
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dependence on vertical integration: Overly depending on a single manufacturer will run a great risk of whatever financial and operational constraints it has. Meanwhile‚ Cisco may lose the opportunity to select the most appropriate suppliers. Values: Low cost: Selecting Foxconn can dramatically decrease the cost due to the cheaper labor force and materials from China and other Asian countries‚ as well as reduction in transition. Efficient supply chain: A single site and its vertical integration create
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by franchisees due to increased fees Opportunities 1) Expansion into emerging markets/economies 2) Organic menu response to growing demand 3) Diversification and Acquisition: a. new concept QSRs & fast casual 4) Increased vertical integration 5) Exploit new technologies Threats 1) Expensive new regulations 2) Loss of competitive edge 3) Currency exchange and trade policies 4) Changes in demographics 5) Global increase of litigation against company | High Probability/High
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where products are sold (usually to organisations). Therefore‚ business and product market are connected since the business allows products to be sold in markets. Finally‚ there is a correlation between vertical integration and value added. In fact‚ the more a company has resorts to vertical integration‚ more its Value added ratio would be high. But most of companies do not create‚ on their own‚ their products completely. We come to wonder‚ if value added is a key element for business and its product
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