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