vertical integration
upstream
downstream
drivers
security of supply
reliability of supply
restriction to competitors
scarce resources
control raw material's cost
drivers
control customers
guarantee of business
access market data
customer knowledge
extent
narrow
wide
balance
fast flow
capacity
output variety
sell surplus
buy shortages
core capacity
outsource varation
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+
different economic scales
reduce market forces
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capacity mismatch
more product variability downstream
different competitive strengths at different tiers
higher risks
supplier lock in