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Energy Marketing
Published in Anco S. Blazev, Global Energy Market Trends, 2021
The growth strategy choices are: No changes, where the company prefers to keep the present (hopefully most successful) level of operating. No growth is projected, nor expected. This model is unusual for American enterprises larger than hot dog vendors’ carts, but is common in many other, mostly developing, countries.Horizontal integration, or horizontal growth, is where a firm grows by acquiring other businesses in the same line of work. This is the most common business model in developed countries as well.Vertical integration can be forward or backward. — Forward integration is where the company grows towards its customers.— Backward integration is where the company grows towards its source of supply.
Integrating information across built environment boundaries
Published in Adriana X. Sanchez, Keith D. Hampson, Geoffrey London, Integrating Information in Built Environments, 2017
Adriana X. Sanchez, Keith D. Hampson, Geoffrey London
A value chain is ‘a well-established concept for considering key activities that an organization can perform or manage with the intention of adding value for the customer as products and services move from conception to delivery to the customer’ (Barlow and Li, 2005). The value chain concept is closely related to the supply chain but focuses on the activities or processes that add value from concept to delivery, rather than on the organisations themselves. Within this field of value chain integration, one of the focus areas is on enhancing the inter-organisational linkages and information sharing through the implementation of new technological solutions (Barlow and Li, 2005). Chapter 13 (Støre-Valen et al.) will exemplify this point through case studies in Norway that show how value is realised differently by different stakeholders. Vertical integration provides a competitive advantage, especially in sectors where the clients and end-users are highly demanding and are perceived as under-served by what is available in the market (Christensen et al., 2009). Chapter 12 (Meistad et al.) illustrates this issue through four case studies from Norway that explore different approaches to integrating information while balancing the needs and drivers of different stakeholders.
Supply chain management
Published in Andrew Greasley, Absolute Essentials of Operations Management, 2019
Complete integration is achieved by an organization when it takes ownership of other organizations in the supply chain. The amount of ownership of the supply chain by an organization is termed its ‘level of vertical integration’. When an organization owns upstream or supply-side elements of the supply chain, it is termed ‘backward vertical integration’. The ownership of downstream or demand-side elements in the supply chain is termed ‘forward vertical integration’. When a company owns elements of a different supply chain, such as a holding company that has interests in organizations operating in various markets, the term used is ‘horizontal integration’.
Industry 4.0 and lean management: a proposed integration model and research propositions
Published in Production & Manufacturing Research, 2018
The value should be defined in terms of customer needs for a specific product or service the organization caters. Due to Industry 4.0, the customer needs are changing drastically, and new customer needs are emerging (Fonseca, 2018). A large amount of data on customer needs must be analysed through data analytics, before identifying the customer needs which can be met by the organization (Lee et al., 2014). The prime purpose of vertical integration is to meet the customer needs in an efficient manner using minimum resources. Proposition1: While designing the vertical integration architecture through Industry 4.0 for implementing Industry 4.0, defining the value in terms of customer needs for products and services will form the underlying principle for vertical integration.
Forward or backward: The Impact of Vertical Integration Direction on the bullwhip effect
Published in International Journal of Production Research, 2022
Jing Liang, Shilei Yang, Xiaowen Huang, Jing Zhu
The central problem behind these issues is the incentive alignment. A recent paper has researched vertical contracts between a manufacturer and a retailer and their influence on the bullwhip effect (Qu and Raff 2020). Even though contractual arrangements are conducive to aligning incentives, previous analytical research has also proven their limitations, especially when private information is involved. Vertical integration represents the ownership and common control of different business activities in adjacent supply chain stages (Perry 1989; Fan et al. 2017). Unlike the contractual arrangements, vertical integration uses the ownership mechanism to align incentives and transforms a decentralised supply chain into a centralised one under common ownership.
Information sharing strategies in a hybrid-format online retailing supply chain
Published in International Journal of Production Research, 2021
Tong-Yuan Wang, Yan-Lai Li, Hong-Tai Yang, Kwai-Sang Chin, Zeng-Qiang Wang
Vertical integration is a ubiquitous phenomenon in practice, which enhances the competitiveness of enterprises. Here, we examine the information-sharing strategy of the intermediary when the manufacturer and retailer integrate as a union. The two decision-making members in the supply chain are the integrated firm and intermediary. The intermediary should decide whether to share the demand information. By solving the model and comparing the optimal solutions, we can obtain the result shown in Proposition 7. We use superscripts ‘C-IS’ or ‘C-IN’ to denote the scenario where information is shared or not, respectively.