We now shift gears from business strategies and look at corporate strategies. The gist of corporate strategies are decisions or behaviors allowing the company to create some sort of competitive advantage using the resources on hand encompassing different markets.
To open our discussion into corporate strategies, we will delve into vertical integration. Barney defines vertical integration as the quantity of stages in a product's value chain which the company uses.
Healthcare and technology are continually evolving, so the utilization of these resources for efficient processes is a direct correlation to following through with vertical integration. Medtronic is a key player in many medical device industries, but 5 years ago, Medtronic was fairly weak in the cardiovascular sector. To implement some vertical integration and develop a strong foothold in this sector, Medtronic acquired Covidien for their vascular product groups.
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