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Table of Contents

Chapter 9: Corporate Strategy -- Vertical Integration, Diversification, and Strategic Alliances

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Concentration on a Single Business

Concentration on a Single Business (Continued)

Concentration on a Single Business (Continued)

Vertical Integration

Figure 9.1: Stages in the Raw Material to Consumer Value Chain

Figure 9.2: The Raw Material to Consumer Value Chain in the PC Industry

Figure 9.3: Full and Taper Integration

Creating Value Through Vertical Integration

Arguments Against Vertical Integration

Bureaucratic Costs and the Limits of Vertical Integration

Alternatives to Vertical Integration: Cooperative Relationships and Strategic Outsourcing

Alternatives to Vertical Integration: Cooperative Relationships and Strategic Outsourcing

Alternatives to Vertical Integration: Cooperative Relationships and Strategic Outsourcing

Alternatives to Vertical Integration: Cooperative Relationships and Strategic Outsourcing

Diversification

Diversification

Creating Value Through Diversification

Bureaucratic Costs and the Limits of Diversification

Figure 9.4: Structure of a Company Sharing Marketing Between Two Business Units

Bureaucratic Costs and the Limits of Diversification (Continued)

Diversification That Dissipates Value

Table 9.1: Comparing Related and Unrelated Diversification

Strategic Alliances as an Alternative to Diversification

Chapter Summary

Author: Milton Pressley