Samsung Electronics and LG Electronics - two South Korean digital product makers - recently announced plans to vertically integrate. According to industry sources, each firm is making the investments required to produce products such as cell phones and digital TV's in a self-sufficient manner. LG Electronics plans to invest 30 trillion won by 2010 to make this happen, hoping that the cost savings and reduction in risks associated with vertical integration justify the investment.
If you were a decision maker at LG Electronics, would you have recommended vertical integration?© BrainMass Inc. brainmass.com October 17, 2018, 8:46 am ad1c9bdddf
Yes, I would definitely recommend vertical integration because of multiple reasons. First of all, it will allow the company to reduce its operating costs and thus, make ...
Discusses benefits of vertical integration at LG electronics.
Strategic Leadership and Innovation at Apple Inc.
Prepare a case analysis for Case 23-1, Strategic Leadership and Innovation at Apple Inc. The cases analysis includes:
Voted as the most innovative company for three consecutive years during 2006 â?" 2008 and as America's number 1 most Admired Company (McGregor, 2008), Apple seemed to have it all: innovative products that have redefined their markets (such as iMac and iPod), a consumer base as loyal as a fan club, and a business model characterized by vertical integration and synergies that no competitor could easily imitate. The Apple brand had transcended the barriers of the computer industry to traverse the consumer electronics, record, movie, and the video and music production industries (see Figure 1 for an outline of Apple's product and service portfolio). In 2008 the Apple brand was listed as the 24th most valuable global brand (up from 33rd place the previous year), valued at $13.7 billion (Interbrand, 2008).
o A summary of salient points of the case.
o Answers to key questions:
ï?§ Provide an overview of the computing segment of the computer technology industry and its structure.
ï?§ What are the opportunities and threats facing industry players?
ï?§ What are the keys to success in the industry?
ï?§ Prepare a comparative competitive position evaluation of Apple Inc., and its competitors.
ï?§ What options are open to Apple Inc.?