vertical integration of youngor
This case is typical Enterprise Strategy Group, the industrial chain of vertical integration (vertical integration) problem. Youngor to the practice of vertical integration chain, there are many precedents. Business history in the West, accompanied by the development of production and management technology, many companies have gone through a chain of small-scale operations through vertical integration of industry development and growth process. Ford formed a super chain vertical integration business. Pursuit of scale, Ford continued to integrate the upstream, from automotive to mining are all steel to Ford for themselves.
North America, some of the major petrochemical companies such as Mobil, also covering the mining, refining, transportation and marketing of all activities within the industrial chain. It was only last 15 to 20 years, the western companies started to pursue "new focus (refocus)", the company limited coverage of certain important link chain, while the non-focused chain link left to other enterprise do. To comment Youngor's vertical integration strategy of right and wrong, we must also take some of the basic concepts of vertical integration began to talk.
Vertical integration refers to its upstream and downstream industry chain extension. Involvement in the production of upstream raw materials and their means of control known as the "backward integration" (backward integration), Youngor as textiles and garment manufacturing enterprises to link extension is an example; the other hand, the involvement of downstream marketing resources and control referred to as "forward integration" (forward integration). Youngor is an extension to the retail terminal to the integration of the former. And whether an enterprise should form a vertically integrated industry chain, Youngor choose "vertical integration" in the context of the current industry is reasonable.
Youngor as a developed to a certain scale...