Pregunta:
Arguments against vertical integration
Autor: Hjalmer PedersenRespuesta:
• Rapid technological development (=lots of uncertainty with whom to integrate) against upstream vertical integration. It is perhaps better to buy inputs from market to ensure that you get the newest stuff • When there is (fluctuating) limited capacity within firm. Can do a quasi integration, using its own limited capacity in the input stage and buy the rest of the input from market uncertainty in the company's ‘internal’ market can cause outsourcing of parts of production to put the risk on other companies Example: Within the Wind industry, it is common that producers both make inputs themselves and buy the same inputs on the market.
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