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 1NJU 贾良定
• 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 2NJU 贾良定
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 3NJU 贾良定
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 4NJU 贾良定
Costs of Vertical
Integration
⑴COST OF OVERCOMING MOBILITY
BARRIERS
⑵INCREASED OPERATING LEVERAGE
⑶REDUCED FLEXIBILITY TO CHANGE
PARTNERS
⑷HIGHER OVERALL EXIT BARRIERS
September 2002 5NJU 贾良定
⑸CAPITAL INVESTMENT
REQUIREMENTS
⑹FORECLOSURE OF ACCESS TO
SUPPLIER OR CONSUMER RESEACH
AND /OR KNOW-HOW
⑺MAITAINING BALANCE
⑻DULLED INCENTIVES
⑼DIFFERING MANAGERIAL
REQUIREMENTS
September 2002 6NJU 贾良定
Strategic Issues in
Forward Integration
⑴IMPROVED ABILITY TO
DIFFERENTIATE
⑵ACCESS TO DISTRIBUTION CHANNELS
⑶BETTER ACCESS TO MARKET
INFORMATION
⑷HIGHER PRICE REALIZATION
September 2002 7NJU 贾良定
Strategic Issues in
Backward Integration
⑴PROPRIETARY KNOWLEDGE
⑵DIFFERENTIATION
September 2002 8NJU 贾良定
, 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 9NJU 贾良定
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 10NJU 贾良定
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 11NJU 贾良定
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 12NJU 贾良定
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 13NJU 贾良定
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.
September 2002 14NJU 贾良定
• Thanks!
September 2002 15NJU 贾良定
