September 2002
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第十一讲 纵向一体化的战略分析
Benefits of Vertical Integration
Costs of Vertical Integration
Strategic Issues in Forward Integration
Strategic Issues in Backward Integration
, Tapered Integration and Quasi-Integration
Illusions in Vertical Integration Decisions
September 2002
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Vertical integration is the combination of technologically distinct production, distribution, selling, and/or other economic processes within the confines of a single firm. As such, it represents a decision by the firm to utilize internal or administrative transactions rather than market transactions to accomplish its economic purposes.
In theory, all the functions we now expect a corporation to perform could be performed by a consortium of independent economic entities, each contracting with a central coordinator, which itself need be little more than a desk and a single manager.
September 2002
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Benefits of Vertical Integration
⑴ECONOMIES OF INTEGRATION
①Economies of Combined Operations.
②Economies of Internal Control and Coordination
③Economies of Information.
④Economies of Avoiding the market.
⑤Economies of Stable Relationships.
⑵TAP INTO TECHNOLOGY
⑶ASSURE SUPPLY AND /OR DEMAND
September 2002
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⑷OFFSET BARGAINING POWER AND INPUT COST DISTORTIONS
⑸ENHANCED ABILITY TO DIFFERENTIATE
⑹ELEVATE ENTRY AND MOBILITY BARRIERS
⑺ENTER A HIGHER RETURN BUSINESS
⑻DEFEND AGAINST FORECLOSURE
September 2002
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Costs of Vertical Integration
⑴COST OF OVERCOMING MOBILITY BARRIERS
⑵INCREASED OPERATING LEVERAGE
⑶REDUCED FLEXIBILITY TO CHANGE PARTNERS
⑷HIGHER OVERALL EXIT BARRIERS
September 2002
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⑸CAPITAL INVESTMENT REQUIREMENTS
⑹FORECLOSURE OF ACCESS TO SUPPLIER OR CONSUMER RESEACH AND /OR KNOW-HOW
⑺MAITAINING BALANCE
⑻DULLED INCENTIVES
⑼DIFFERING MANAGERIAL REQUIREMENTS
September 2002
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Strategic Issues in Forward Integration
⑴IMPROVED ABILITY TO DIFFERENTIATE
⑵ACCESS TO DISTRIBUTION CHANNELS
⑶BETTER ACCESS TO MARKET INFORMATION
⑷HIGHER PRICE REALIZATION
September 2002
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Strategic Issues in Backward Integration
⑴PROPRIETARY KNOWLEDGE
⑵DIFFERENTIATION
September 2002
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, Tapered Integration and Quasi-Integration
⑴CONTRACTS AND THE ECONOMIES OF INTEGRATION
It is essential to recognize the possibility that some economies of integration could be gained by the right type of long-term or even short-term contract between independent firms.
⑵TAPERED INTEGRATION
Tapered integration is partial integration backward or forward, the firm purchasing the rest of its needs on the open market.
September 2002
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Advantages:
①Tapered integration results in less elevation in fixed costs than full integration.
②The degree of taper(the proportion of product or service purchased outside) can be adjusted to reflect the degree of risk in the market.
③Taper can also be used to guard against imbalance between stages.
④Tapered integration reduces the risk of locked-in relationships to the extent of the degree of taper.
⑤It also gives the firm some access to outside R&D activities and can provide a partial solution to the problem of internal incentives.
⑥Tapered integration allows the firm to prove that a threat of full integration is credible, which provides a strong discipline on suppliers or customers and may avoid the necessity of full integration to offset bargaining power.
September 2002
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⑶QUASI-INTEGRATION
Quasi-integration is the establishment of a relationship between vertically related businesses that is somewhere in between long-term contracts and full ownership.
minority equity investment;
loans or loan guarantees;
prepurchase credits;
exclusive dealing agreements;
specialized logistical facilities;
cooperative R&D.
September 2002
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Illusions in Vertical Integration Decisions
⑴A strong market position in one stage can automatically be extended to the other
Only if the integration per se produced some tangible benefits would integration allow the extension of market power, because under these circumstances it would improve the competitiveness of the combined entity.
⑵It is always cheaper to do things internally.
September 2002
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⑶It often makes sense to integrate into a competitive business
Firms in such an industry are earning low returns and are competing vigorously to improve quality and serve customers. There are many firms to choose from in buying and selling. Vertical integration can dull incentives and blunt initiative.
September 2002
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⑷Vertical integration can serve a strategically sick business
Each stage of a vertical chain must be strategically sound to insure the health of the enterprise as a whole. If one link is sick, the sickness is more likely to spread to the other healthy units.
⑸Experience in one part of the vertical chain automatically qualifies management to direct upstream or downstream units.
