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The company ahs recently established high quality retail centers. This helps them cntrol their image and marketing as well.
-
Positive/Negitives
+ lower transaction costs
+ able to monopolize market
+ lower uncertainty
+ increase investment
- Higher monetary and organizational costs of switching to other suppliers/buyers
- As techonolgy changes rapidly, vertically integrated companies must constantly invest in updated infrastructure to keep up with competition. This is very costly
2) An example of a companies value chain that has been outsourced is Apple's computer manufacturing department...
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