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Vertical Integration Vs. Outsourcing “Following The Crowd”

Vertical Integration vs. Outsourcing
“Following the Crowd”

Collaboration issues in an SCM context

Table of Content

1. Thesis and Introduction
1.1 Thesis
1.2 Purpose
1.3 Introduction into the topic

2. Logical Problems and Sub-questions

3. Methodology and Justification of Sections

4. Literature Review
4.1 Literature Concerning the Terminology
4.2 Literature Concerning the Main Theories of Outsourcing and Vertical Integration and the Examples of Carnegie Steel Company and Nike
4.2.1 Literature Concerning Vertical Integration and
Carnegie Steel Company
4.2.2 Literature Concerning Outsourcing and Nike

5. Vertical Integration
5.1 The Concept
5.1.1 Introduction into the Concept
5.1.2 Advantages, Reasons, Goals
5.1.3 Disadvantages and Deficiencies
The Example of Carnegie Steel Company

6. Outsourcing
6.1 The Concept
6.1.1 Introduction into the Concept
6.1.2 Advantages, Reasons, Goals
6.1.3 Disadvantages and Deficiencies
6.2 The Example of Nike

7. Antagonism in the Goal of Improved Cooperation
and Production flow
7.1 Conflicts in an Integrated Supply Chain
7.1.1 In-house Collaboration vs. B2B- Collaboration
7.1.2 The Reliability of Third-World Suppliers
and Quality Considerations
7.2 Giving up Profit Margin Advantages

8. Conclusion and Outlook

9. References

1. Thesis and Introduction

(1.1) Thesis

The concept of vertical integration has evolved at the end of the 19th century and from then on succeeded throughout decades, helping blue chip companies to gain large profits and to gain market shares that are unimaginable today. In the 1980ies however, after the first two decades of intensive research in strategic management had passed the time of outsourcing as the new “promise of heaven and earth” began, caused by the widely perceived need to delegate non-core operations from internal processes (especially production) to external companies and by the necessity to be able to react to...