Presentation is loading. Please wait.

Presentation is loading. Please wait.

Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-1.

Similar presentations


Presentation on theme: "Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-1."— Presentation transcript:

1 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-1 Chapter 6

2 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 2 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-2 MisionObjetivos Analisis Externo Analisis Interno Decisiones estrategicas Implementacion Estrategica Ventaja competitiva El proceso de administracion estrategica Estrategia a nivel corporativo A que negocio entrar? Integracion vertical

3 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 3 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-3 Logica de la estrategia a nivel corporativo Estrategia a nivel corporativo debe de crear valor 2)A fin de que los negocios dentro de la compania puedan tener valor por si mismos de manera independiente 3)Que el valor de capital no pueda ser creado a traves de inversion en portafolios La estrategia a nivel corporativo debe de generar sinergias que no son posible de crear en mercados de capital integracion vertical+ cadenas economicas de valor 1)A fin de que la compania como un todo crezca

4 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 4 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-4 Que es la integracion vertical Porcesadoras de queso Ejemplo de la pizza Ganaderos Agricultores semillas Distribuidores de alimentos Cadenas de Pizza Consumidor final

5 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 5 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-5 Que es la integracion vertical? procesadores ganaderos agricultores semillas distribuidores Cadenas de pizza Consumidor final Integracion hacia atras Inegracion hacia adelante

6 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 6 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-6 Economias de la cadena de valor Logica economica La firma focal es capaz de crear sinergia con otras firmas La firma focal es capaz de generar beneficios mayores a los de la competencia reduccion en costos mejora en beneficios procesadores ganaderos distribuidores Integracion hacia atras Integracion hacia adelante

7 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 7 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-7 Ventaja competitiva Si la integracion vertical cumple los criterios del VRIO, entonces puede generar una ventaja competitiva

8 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 8 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-8 Valor de la integracion vertical Mercado vs. intercambio economico integrado el intercambio economico debe de ser tal que permita Maximizar el valor de la firma focal los mercados y las formas de integracion permiten en intercambio economico asi las firmas buscan la manera de maxmizar sus beneficios La integracion hace sentido cuando la firma focal puede generar mayor valor que aquel en el que el mercado se crea

9 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 9 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-9 Valor de la integracion vertical Consideraciones de valor Apalan- camiento flexibilidad Oportu- nismo las capacidades de Una firma pueden Ser fuentes de ventaja Competitiva en otros negocios de no ser asi, no Se da el intercambio se puede generar al internalizar internalizar puede ser menos costoso Que utilizar oportunismo internalizar es menos flexible flexibilidad se da cuando la Incertidumbre es alta

10 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 10 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-10 Rareza de la IV Integracion vs no integracion la estrategia de integracion puede ser rara si integra o no lo hace pues esta NO depende la forma que la empresa tome sino quer depende en el valor generado

11 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 11 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-11 Imitabilidad de la IV Forma vs funcion la forma, per se, no es costosa de imitar la funcion de valor puede ser costosa de imitar si: la combinacion de los recursos y capacidades le da: historicidad unica Abiguedad causal Complejidad social Requerimientos de capital son limitados

12 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 12 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-12 Imitabilidad de IV Modos de entrada adquisicion de desarrollo interno las alianzas estrategicas son un ejemplo de la IV a menos costo adquriri un proveeedor en vez de generarlos los limites son las capacidades y recursos de las empresas

13 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 13 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-13 Organizacion Functional Structure (U-Form) AccountingFinanceMarketingHREngineering Conflict Original Business New Business Original Business New Business New Business New Business New Business Original Business Original Business Original Business Cooperation CEOs Role

14 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 14 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-14 Organizacion de la IV Metodos de control administrativo Que se necesita controlar? cooperacion y conflicto entre areas integracion de nuevos negocios los esfuerzos para generar sinergias horizonte de tiempo entre administradores

15 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 15 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-15 Expansion Internacional Cost (capital en riesgo) Control exportacion licencia franquicia Alianza estrategica inversion bajo alto adquisicion Costo-Control tradeoff Int. vertical No IV IV parcial

16 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 16 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-16 Resumen Integracion vertical… hace sentido cuando economias de la cadena de Valor se pueden crear y capturar puede peritir a algunas companias apalancar sus capacidades puede ser una respuesta al oportunismo y la incertidumbre como un tipo de intercambio NO es raro ni ostoso de imitar

17 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 17 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-17 Resumen La integracion vertical… es una decision importante de considerar para Posibles expansiones internacionales hace sentido en circunstancias especificas puede ser costosa si se hace mal Propiedad puede ser costosa, integrarse solo cuando los beneficios son mas que los costos

18 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-18 Chapter 7

19 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 19 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-19 MissionObjectives External Analysis Internal Analysis Strategic Choice Strategy Implementation Competitive Advantage The Strategic Management Process Corporate Level Strategy Which Businesses to Enter? Vertical Integration Diversification

20 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 20 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-20 Logic of Corporate Level Strategy Corporate level strategy should create value: 1)such that businesses forming the corporate whole are worth more than they would be under independent ownership 2)that equity holders cannot create through portfolio investing a corporate level strategy must create synergies Therefore, economies of scope - diversification

21 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 21 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-21 Integration and Diversification Integration Diversification Customer Distribution Focal Firm Supplier Raw Materials Forward Backward Current Businesses No Links Many Links Unrelated Related Other Businesses Other Businesses

22 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 22 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-22 Types of Corporate Diversification Product Diversification: Geographic Market Diversification: Product-Market Diversification operating in multiple industries operating in multiple geographic markets operating in multiple industries in multiple geographic markets At a general level…

23 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 23 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-23 Types of Corporate Diversification Limited Diversification Related Diversification Unrelated Diversification single business: > 95% of sales in single business dominant business: 70% to 95% in single business related-constrained: all businesses related on most dimensions related-linked: some businesses related on some dimensions businesses are not related At a more specific level…

24 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 24 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-24 Product and Geographic Diversification Possibilities: single-business in multiple geographic areas single-business in one geographic area related-constrained in one or multiple geographic areas related-linked in one or multiple geographic areas unrelated in one or multiple geographic areas Note: relatedness usually refers to products seemingly unrelated products may be related on other dimensions

25 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 25 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-25 Competitive Advantage If a diversification strategy meets the VRIO criteria… Is it Valuable? Is it Rare? Is it costly to Imitate? Is the firm Organized to exploit it? …it may create competitive advantage.

26 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 26 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-26 Value of Diversification Two Criteria 1)There must be some economy of scope 2)The focal firm must have a cost advantage over outside equity holders in exploiting any economies of scope

27 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 27 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-27 Value of Diversification Business X Business Y Business Z Independent: equity holder could buy shares of each firm Value Business X Business Y Business Z Focal Firm Value ++ Economies Of Scope Combined: equity holder buys shares in one firm

28 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 28 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-28 Economies of Scope Four Types Operational Financial Anticompetitive Managerialism

29 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 29 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-29 Economies of Scope Operational Economies of Scope Sharing Activities exploiting efficiencies of sharing business activities Example: Orbitz Spreading Core Competencies exploiting core competencies in other businesses Example: Frito-Lays Trucking competency must be strategically relevant

30 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 30 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-30 Economies of Scope Financial Economies of Scope Internal Capital Market premise: insiders can allocate capital across divisions more efficiently than the external capital market works only if managers have better information may protect proprietary information may suffer from escalating commitment Example: Hanson Trust, PLC

31 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 31 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-31 Economies of Scope Financial Economies of Scope Risk Reduction counter cyclical businesses may provide decreased overall risk Example: Snow Skiis & Water Skiis individual investors can usually do this more efficiently than a firm however,

32 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 32 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-32 Economies of Scope Financial Economies of Scope Tax Advantages transfer pricing policy allows profits in one division to be offset by losses in another division this is especially true internationally Example: Ireland can be used to smooth income

33 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 33 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-33 Economies of Scope Anticompetitive Economies of Scope Multipoint Competition mutual forbearance a firm chooses not to compete aggressively in one market to avoid competition in another market Example: American Airlines & Delta: Dallas & Atlanta Market Power using profits from one business to compete in another business using buying power in one business to obtain advantage in another business

34 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 34 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-34 Economies of Scope Managerialism an economy of scope that accrues to managers at the expense of equity holders managers of larger firms receive more compensation (larger scope = more compensation) therefore, managers have an incentive to acquire other firms and become ever larger even though the incentive is there, it is difficult to know if managerialism is the reason for an acquisition

35 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 35 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-35 Equity Holders and Economies of Scope Most economies of scope cannot be captured by equity holders risk reduction can be captured by equity holders Managers should consider whether corporate diversification will generate economies of scope that equity holders can capture if a corporate diversification move is unlikely to generate valuable economies of scope, managers should avoid it

36 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 36 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-36 Rareness of Diversification Diversification per se is not rare Underlying economies of scope may be rare relationships that allow an economy of scope to be exploited may be rare an economy of scope may be rare because it is naturally or economically limited a soft drink bottler buys the only source of spring water available a hotel in a resort town creates a large water park, there are only enough customers to support one park

37 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 37 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-37 Imitability of Diversification Duplication of Economies of Scope Less Costly-to-DuplicateCostly-to-Duplicate Employee Compensation Tax Advantages Risk Reduction Shared Activities* Core Competencies Internal Capital Allocation Multipoint Competition Exploiting Market Power (codified/tangible) (tacit/intangible) *may be costly depending on relationships

38 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 38 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-38 Imitability of Diversification Substitution of Economies of Scope Internal Development Strategic Alliances start a new business under the corporate whole find a partner with the desired complementary assets Competitors may use these strategies to arrive at a position of diversification without buying another firm avoids potential cross- firm integration issues less costly than acquiring a firm

39 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 39 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-39 International Diversification Three Types of International Risk Cultural/Popular Financial Political product may not be accepted simply because of your country of origin Example: Resistance to McDonalds by Frances older generation currency exchange general economic conditions Example: Asian economic crisis of the 1990s nationalization quotas tariffs regulations Example: Bolivia nationalized its petroleum industry in the 70s

40 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 40 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-40 International Diversification Managing International Risks Cultural/Popular avoidance neutral branding (disguising country of origin) Example: Where is Häagen-Dazs from? Financial currency hedging geographic diversification spreading risk across several countries

41 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 41 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-41 International Diversification Managing International Risks Political negotiation with governments political neutrality foreign governments often have an interest in direct investment Example: Case International in Brazil find a local partner

42 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 42 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-42 Summary Corporate Strategy: In what businesses should the firm operate? an understanding of diversification helps managers answer that question Two Criteria: 1) economies of scope must exist 2)must create value that outside equity holders cannot create on their own

43 Vertical Integration Strategic Management & Competitive Advantage – Barney & Hesterly 43 Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-43 Summary Economies of Scope a case of synergycombined activities generate greater value than independent activities may generate competitive advantage if they meet the VRIO criteria Firms should pursue diversification only if careful analysis shows that competitive advantage is likely!


Download ppt "Vertical Integration Copyright © 2006 Pearson Prentice Hall. All rights reserved. Strategic Management & Competitive Advantage - Barney & Hesterly 6-1."

Similar presentations


Ads by Google