Why Companies Acquire Their Supply Chains: Hortacsu and Syverson
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Jan. 12 (Bloomberg) -- Business lore and business schoolclasses are full of stories about vertical integration. Theyrange from the classic tales of Carnegie Steel Co., Ford MotorCo.’s River Rouge complex, and General Motors Corp.’s 1926acquisition of Fisher Body, to Boeing Co.’s recent decision tobring production of the 787 Dreamliner in-house after costlydelays at its suppliers.
What these stories share is the notion that companiesvertically integrate so they can ensure ready supplies of keyinputs.