Commentary: Old Economy Or New, Vertical Empires Don't Work

For the likes of General Motors, Ford, and Lockheed Martin, it's a case of "been there, done that." They spent decades combining suppliers and manufacturing operations to cut costs. It turned out to be an expensive failure. Big manufacturers are now shedding everything but their core businesses, replacing the old model of vertical integration with a lean, mean approach based on outsourcing.

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