Case 2: Business Strag

DUE NOVEMBER 6TH, 2013

Case 2 – due Tuesday, November 6

Read the article, “Apple and the Race to Vertical Integration,” found in Document Sharing.

Select one of Apple’s competitors for mobile devices (phones, tablets, tec.):  Samsung, Sony or Lenovo.  You will research what you can about the chosen company and its value chain.  You may have to make some assumptions about channel partners if you can’t find all the information.

1.        Describe and/or draw a value chain for this company, similar to the one in Slide 4 of the Chapter 6 Power Points about Leprino Foods.  Also consider Slide 5.

2.       For the company you have chosen, who might be threatening them with opportunism?  (Specifically, which supplier or distributor might be a threat?)

3.       Evaluate the potential target of vertical integration with regards to the potential benefits.  Would this integration create synergy leading to cost reduction or would it enhance revenue? 

4.       What impact would the integration have on your firm’s capabilities or flexibility?

5.       Do you see a potential for sustained competitive advantage if the vertical integration (either forward or backward) took place?  Use the VRIO criteria to evaluate.
6.       Would you recommend your company integrate vertically to compete with Apple?  Why or why not?

This case must be written in paragraph form, addressing all six questions above.  You may want to insert a drawing after the paragraph addressing question 1.  Be sure to cite your sources at the end of the paper.