Ray Kroc did not primarily use vertical integration in the traditional sense, as his focus was on Franchising rather than owning all aspects of production and distribution. However, he did implement strategies that allowed McDonald's to control the supply chain by establishing relationships with suppliers to ensure consistency and quality across franchises. This approach enabled McDonald's to maintain its brand standards and optimize operational efficiency without fully integrating vertically.
Nineteenth-century steel tycoon Andrew Carnegie introduced the concept and use of vertical integration
The BBC is a vertically integrated company because all of it channels are from one company.
McDonalds is a corporation that has full vertical integration. This means they own the production and raising of cattle to the transportation and distribution of their end product.
Vertical Integration
Vertical integration is the merging of companies at different stages of production that aide in making one product. For example, if you wanted to use vertical integration to make a bottle of side, you would buy the company that made the glass for the bottles, the company that makes the bottle caps, the company that makes the labels ect. Carnegie and Rockefeller used this with their respective companies which were steel production and oil
He used vertical integration so that he did not have to cooperate with the companies that sold raw materials. He also took rebates from railroad companies.
John D. Rockefeller's Standard Oil
Excessive (over-) dependence on the suppliers, implying lack of control on supply side.
buying every part of the process, there by taking business away from other companies.
buying every part of the process, there by taking business away from other companies.
Rockefeller made a deal with the railroads that led to him expanding horizontaly to take over the major refineries. Once he went horizontal he went vertical. Rockefeller controlled the up-stream, the pipelines, and the retail outlets.
Vodafone uses a fixed network asset in support of its back haul activity. This strengthens it total enterprise service capabilities.?æ