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The Economics of Vertical Disintegration

The Economics of Vertical Disintegration
Author: D. G. McFetridge
Publisher: Vancouver, B.C., Canada : Fraser Institute
Total Pages: 134
Release: 1988
Genre: Contracting out
ISBN:

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From the back cover: The fundamental question addressed by this study is the extent to which service functions formerly performed within industrial firms have been contracted out. If the service sector has grown primarily because manufacturing and other industries have contracted out janitorial, security and other business services, then there in not much economic significance to service sector growth. This also implies that observed declines in manufacturing employment may also represent nothing more than inter-sectoral shifts in the location of employment. This study breaks new ground in developing a series of statistical approaches to the measurement of contracting out. Based on a solid theoretical framework, three new empirical measures of contracting out are presented. The results vary somewhat by method but the overall conclusion is that contracting out is an important phenomenon.


The Drivers of Vertical Disintegration

The Drivers of Vertical Disintegration
Author: Clayton M. Christensen
Publisher:
Total Pages: 28
Release: 1995
Genre:
ISBN:

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In computers, telecommunications, and related industries, dramatic changes are occurring in the nature and extent of vertical integration. Some firms are divesting some of their upstream component production operations, others are decoupling stages in their value chains--selling components in merchant or OEM markets--while others, such as those entering wireless communications or multimedia industries, are aggressively integrating. This paper explores the factors that drive firms' decisions to integrate or disintegrate through a detailed, historical analysis of vertical integration in the disk drive industry. The paper finds two primary reasons for moves to greater or less vertical integration in the industry. The first is the degree of modularity and component standardization in product designs. The second is scale economics.


Vertical Disintegration in the Corporate Hotel Industry

Vertical Disintegration in the Corporate Hotel Industry
Author: Angela Roper
Publisher: Routledge
Total Pages: 180
Release: 2017-09-28
Genre: Business & Economics
ISBN: 1317247825

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This book evaluates how and why vertical disintegration has occurred in the global corporate hotel industry, as it undergoes a structural transformation. It provides a unique insight into the new competitive landscape. Underpinned by academic literature, it includes first-hand accounts from the most eminent senior executives of firms in and around the industry. It provides an in-depth perspective of a modern industrial phenomenon and makes observations as to the profitable way forward for the industry. This text is an important read for those working, advising and investing in the sector as well as for students, graduates and researchers.


Reversing History

Reversing History
Author: Malcolm S. Salter
Publisher:
Total Pages: 59
Release: 1996
Genre:
ISBN:

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This paper addresses the question of whether or not General Motor's long-standing strategy of vertical ownership and integration of up-stream components remains a competitive advantage for the Corporation and a value-creating proposition for its shareholders. ... I address the central question of this paper by examining what the consequences would be of GM divesting Delphi Automotive Systems, its $26 billion automotive components group which includes over 200 lines of business. I conclude that, as far as Delphi is concerned, vertical ownership currently appears more an historical anomaly than a continuing source of competitive advantage for GM. ... While I focus in this paper on GM's particular situation, the analytical approach is relevant to a variety of other fims which have pioneered the development of durable goods industries in the United States. This approach reveals the benefits and cost of vertical ownership to the firm and the financial effects of vertical divestiture on current shareholders, drawing on the literature of economics, finance, organization theory, and competitive strategy.


The Disintegration of Production

The Disintegration of Production
Author: Mariko Watanabe
Publisher: Edward Elgar Publishing
Total Pages: 361
Release: 2014-12-31
Genre: Business & Economics
ISBN: 1783476427

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øIn the past two decades, China has experienced rapid industrial and economic growth. This fascinating book explores the unique Chinese business strategy of vigorous market entry and low prices, which has been the key feature of this accelerated indust


Outsourcing Economics

Outsourcing Economics
Author: William Milberg
Publisher: Cambridge University Press
Total Pages: 377
Release: 2013-04-29
Genre: Business & Economics
ISBN: 1107355222

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Outsourcing Economics has a double meaning. First, it is a book about the economics of outsourcing. Second, it examines the way that economists have understood globalization as a pure market phenomenon, and as a result have 'outsourced' the explanation of world economic forces to other disciplines. Markets are embedded in a set of institutions - labor, government, corporate, civil society, and household - that mold the power asymmetries that influence the distribution of the gains from globalization. In this book, William Milberg and Deborah Winkler propose an institutional theory of trade and development starting with the growth of global value chains - international networks of production that have restructured the global economy and its governance over the past twenty-five years. They find that offshoring leads to greater economic insecurity in industrialized countries that lack institutions supporting workers. They also find that offshoring allows firms to reduce domestic investment and focus on finance and short-run stock movements.


Defining and Measuring the “Market for Brands”: Are Emerging Economies Catching Up?

Defining and Measuring the “Market for Brands”: Are Emerging Economies Catching Up?
Author: World Intellectual Property Organization
Publisher: WIPO
Total Pages: 36
Release: 2014
Genre: Law
ISBN:

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Markets for brands, as defined in this paper, play an important but underappreciated economic role in today’s global economy. The ability to use Market for Brands allows companies to diversify their business; access competences; and generate new revenues without substantial investments. This paper defines and provides a taxonomy for different brand markets then analyzes the economic rationale of such markets. It also assesses the relative importance of the different brand-related transaction types in developed and emerging economies alike.