Management

To vertically integrate or outsource is a critical strategic decision that can play a big role in a company’s success or failure. Which model is better, vertical integration or outsourcing, ultimately depends on each situation. In M3 videos, we give examples of some companies gaining power and advantage via vertical integration and others gaining competitive advantage over outsourcing, due to the different situations they find themselves in, which include industry dynamics, company goal, company resources, and nature and role of the activities in question.  After reading textbook Ch07 (attached), think of a “make or buy” decision through YOUR OWN experience. Describe how that decision was made and the rationale. Apply the make versus buy strategy tool at the end of the chapter to evaluate that decision, the factors affecting that decision, and whether you think that was a good decision and why.

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