Do vertical integration strategies succeed?
Bruce, They succeed for some, and not for others. My own opinion is that any business can make almost any business model work, as long as they are consistent and execute well. That said, it is interesting how different industries generally evolve. The ones that involve huge capital requirements (utilities, oil, manufacturers of very large products) generally are vertically integrated. The medical device industry has a long history of outsourcing. Some industries, such as the batter industry, have vertically integrated because of concern around protection of intellectual property; the same can be said for chipmakers. Retailers, almost by definition, are not vertically integrated. Even in those industries, there are exceptions, which only prove the rule: to each, his own strategy. Josh.
