Theoretical Framework of Vertical Integration in Strategic Management
Annotation
integration strategy to create sustainable competitive advantage depends on the rarity and on the cost of imitability of a particular strategy chosen by a firm. Backward and forward vertical integration may be pursued by industry firms competing to achieve competitive advantage property and to increase the chance to guarantee rare, difficult to imitate and costly resources. This work investigates how these particular strategies create economies of scale and scope and discusses it theoretically. This paper has the objective to investigate if the vertical integration strategy makes value for bus...
more