Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition by Pearson

CHAPTER 8

Vertical Integration

LEARNING OBJECTIVES

After reading this chapter, you should be able to:

1. 8.1 Define corporate strategy.
2. 8.2 Define vertical integration, forward vertical integration, and backward vertical integration.
3. 8.3 Discuss how vertical integration can create value by:
   1. a. reducing the threat of opportunism;
   2. b. enabling a firm to exploit its valuable, rare, and costly-to-imitate resources and capabilities;
   3. c. enabling a firm to retain its flexibility.
4. 8.4 Describe conditions under which vertical integration can be a source of sustained competitive ad-vantage.
5. 8.5 Describe how the functional organization structure, management controls, and compensation policies are used to implement vertical integration.

JSW Steel’s Strategic ...