Itergated Supply Chain

I dentify a business that is consider vertically integrated

and in the weekly discussion forum, provide your thoughts concerning the

level and value of vertical integration to this

organization.

Identify what you perceive to be the benefits and

pitfalls of vertical integration and when it does or

does not make business sense to do so.

Discuss your thoughts concerning the impact of

technology on an organization.

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Top of Form

Identify some likely approaches to accommodating changes

in capacity using technology and other, perhaps more

quickly implemented approaches. |

Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need.

American Apparel is a fashion retailer and manufacturer that actually advertise itself as a vertically integrated industrial company. The brand is based in downtown Los Angeles, where from a single building they control the dyeing, finishing, designing, sewing, cutting, marketing and distribution of the company's product. The company shoots and distributes its own advertisements, often using its own employees as subjects. It also owns and operates each of its retail locations as opposed to franchising. According to the management, the vertically integrated model allows the company to design, cut, distribute and sell an item globally in the span of a week. The original founder Dov Charney has remained the majority shareholder and CEO. Since the company controls both the production and distribution of its product, it is an example of a balanced vertically integrated corporation.

Organizations with vertical integration strategies control the input and output of the supply chain, meaning it owns the supply of the raw material and has the ability to distribute its finished product. By having vertical...