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Vertical integration can be desirable because it secures supplies needed by the firm to produce its product and the market needed to sell the product, but it can become undesirable when a firm's actions become anti-competitive and impede free competition in an open marketplace. Vertical integration is one method of avoiding the hold-up problem.
Examples for tapered integration are (1) Tim Hortons owning some of its retail outlets but also using franchising, (2) Coca-Cola and Pepsi both having integrated bottling subsidiaries while also relying on independent bottlers for production and distribution in some markets, or (3) BMW which uses both in-house market research from its Corporate Center Development and external market research ...
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Differentiation strategy is not suitable for small companies. It is more appropriate for big companies to apply differentiation in any one or several of the functional groups (finance, purchase, marketing, inventory etc.). [5] This point is critical. For example, GE uses its finance division differentiate itself.
Last month, the coffee juggernaut reported its best quarter ever, with revenue of $4.9 billion and earnings of just under $1 billion.
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Vertical product differentiation can be measured objectively by a consumer. For example, when comparing two similar products, the quality and price can clearly be identified and ranked by the customer. If both A and B products have the same price to the consumer, then the market share for each one will be positive, according to the Hotelling ...
Roy Street Coffee & Tea in Seattle, an example of a stealth Starbucks, 2016. In 2009, at least three stores in Seattle were de-branded to remove the logo and brand name, and remodel the stores as local coffee houses "inspired by Starbucks". [278] [279] CEO Howard Schultz called the unbranded stores a "laboratory for Starbucks". [280]