Talk:Vertical integration
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In the statement "Some in the music recording industry believe vertical integration is the best way to survive in the modern, post-Napster environment." who are the "some?" Many in the music industry, such as artists and artist's representatives, would disagree with this philosophy. My feeling is that the "some people" in this statement might refer to members of the RIAA, who want to maintain a stranglehold on the means of production, distribution, and marketing. Perhaps the original author would like to provide some attribution? --malber 15:42, 6 October 2005 (UTC)
- Take your anti-RIAA-crap to some pirate-forum, not here.
Maybe I am reading in to the definition, but it seems to be slanted towards the witer's opinions. Microsoft? A better example would have been the movie studios in their heyday. They made the pictures, they had huge stables of contracted actors, producers and writers, they owned movie theaters in which they would only show their movies.
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[edit] Economics
I've heard that they want to expand this article by merging it with vertical expansion. Well, isn’t it all most the same? But at the same time for those who have hard time distinguishing between vertical expansion and vertical integration, then I recommend to read some articles.
To expand can mean to things: either buy another company or merge. To integrate: well that’s more of a merge, but it is possible to buy, let’s say 49% of shares, well you bought a bite of that company. In the end it’s the same shit!!!
1. Masetn, S. E., Meehan,J W.,Jr., & Snyder, E. A. 1989, vertical integration in the u.s. auto industry.
This is just one of hundreds of articles about vertical integration.
[edit] Rockefeller
Rockefeller, cited in this article, did not use vertical integration. Stockholders of smaller oil companies assigned their stock to his Standard Oil Company, which then consolidated their operations. The SOC ultimately reigned over virtually the entire world petroleum market. Therefore, Rockefeller's strategy was "horizontal integration," a much less justifiable method of monopolizing an industry through allying with competitors.
[edit] list of horizontal integration
i would like to know at least 1,000,000,000,000 examples of horizontlal integration
Hmmm, that is more than the entire human population, so each person must have involvement in at least 150,000 companies.
[edit] Apple
I'm not sure if Apple is a worthwhile example of vertical integration -- Their products are full of parts (processors, memory, etc.) supplied by third parties, and the manufacturing is almost entirely performed on a contract-by-contract basis by large Asian manufacturing firms. While it's fair to say that they're more vertically integrated than most other computer companies (designing both software and hardware and selling it all at their own chain of stores), they're far, far short of what one might call a full vertical integration.
- Well full vertical integration can only exist in the most elementary sectors of the economy, like in agriculture. Anything beyond that, and the economy already becomes heavily specialized, with a large competitive business-to-business capital goods market coming into existance. Vertical integration examples are scarce when competition exists. I think a better example can be found than the Apple one. Intangible 16:44, 13 J
Apple actually is a pretty bad example. Look at any iPod or Apple notebook and you'll see that it was "designed by Apple in California". Manufacture takes place in Taiwan or China by third-party contractors. This is the same for most other computer manufacturers. (Visited a Flextronics plant once where notebooks for three different brands where produced side-by-side.)
What about Ford (River Rouge) as an example for vertical integration??? That was -- at least to my knowledge -- the first and is still be far the most far-reaching form of vertical integration.
I'm not sure if Apple is a good example. They have a large line of products but they do not own the companies that compliment their technology. For example, Bose is making a lot of speakers/headphones that are specifically made to be paired with iPods, this is an example of horizontal integration.
I think Apple is a modern example of vertical integration. It might not own all the different parts of it's supply chain, but it's strong partnerships with overseas suppliers are as effective and influential as upstream integration by ownership.
[edit] Potential Example
I've read that the clothing company American Apparel is pretty vertically integrated. I don't believe that they own the facilities that produce the raw materials, but I think they do own almost everything after that(looms to make their cloth, the production facilities, and stores they sell their products in). Might be a good item to beef up the examples section with...
[edit] Another Potential Example
I am writing a paper for an MBA class on supply chains. I may add something here, it is also likely that I will not have the time. In case I don't have the time or if someone is more knowledgeable/able: Anheuser-Busch is a good example of a vertically integrated supply chain. They own the agricultural operations, the rail car manufacturing, the rail cars, can manufacturing, can recycling, crown manufacturing, and bottle manufacturing. The only things missing are the company stores. :)
A list of the A-B business units can be found here (http://www.anheuser-busch.com/business_units/index.html). JT Pickering 03:57, 14 May 2007 (UTC)
[edit] Vertical Expansion
I agree. Vertical expansion is a method of accomplishing vertical integration. Maybe a section describing vertical expansion and searches on this topic lead to vertical integration. JT Pickering 04:03, 14 May 2007 (UTC)
I also agree. Also, the article on vertical expansion doesn't really do the topic justice. E Bellamy - 22 May 2007
