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Running Head: CORPORATE LEVEL STRATEGY
Corporate level strategy
CORPORATE LEVEL STRATEGY
Strategic motives behind vertical integration and outsourcing
Firms engage in vertical integration for various strategic reasons. Understanding theses
strategic reasons why firms may engage in vertical integration calls for the consideration that
vertical integration can be backward or forward vertical integration. Forward vertical integration,
as the name suggests, focuses on the firm's output, how it is distributed and consumed. On the
other hand, backward vertical integration focuses on the sectors of obtaining inputs.
Vertical integration is capable of making a business model stronger and more efficient in its
structure. In addition to that, it is able to bring in advantages competitively. On...
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