Vertical Integration
The firm's ownership of its production of needed inputs or of the channels by which it distributes its outputs is called?
Vertical Integration
What is it called when two independent companies join together to form a combined entity?
Merger
Alliance where A and B share resources to create C as a separate legal entity
Joint Venture
Customers value the …….when doing business.
personal relationship
What are the two types of vertical integration?
Backward and forward integration
What is the process of merging with a competitor at the same stage of the industry value chain?
Horizontal integration
Alliance where firm A and B share resources
Non- Enquiry Alliance
Customer relationships pays off in terms of…..,……, and customer satisfaction?
(revenue growth, profitability,)
revenue growth, profitability
What type of vertical integration changes in an industry value chain that involve moving ownership of activities upstream to the originating (inputs) point of the value chain?
Backward vertical integration
What is one benefit of a horizontal integration strategy?
Reduce competition
Alliance where Firm A buys less than 50% of Firm B
Equity Strategic Alliance
Approach customers by:
(Personalized service (e.g., customizable products)
➢ Personal contact ➢ CRM => Big data & AI very important now!
(Fill in the blank) Forward vertical integration changes in an industry value chain that involve moving ownership of activities closer to the ___ (customer) point of the value chain.
End
Firm A and Firm B merge and become Firm C because A and B were?
Relative Equals
Give two reasons why companies might enter into an alliance
Strengthen competitive position
enter new markets
hedge against uncertainty
learn new capabilities
access critical complementary skills
Value of the product increases as the(...)
network of users increases
How has vertical integration made Tesla more powerful?
This strategy allowed Tesla to avoid shortages of batteries, which have hindered legacy automakers from reaching volume production of electric cars.
How much was the Disney and Pixar deal?
$7.4 Billion
Company grubhub recently partnered with
Transact
Company tries to ?
become dominant provider