9. Vertical Integration: Introduction Vertical integration is the degree to which a firm owns its downstream suppliers and its upstream buyers. Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production
10. Vertical Integration: Varieties A company exhibits backward vertical integration when it controls subsidiaries that produce some of the inputs used in the production of its products. A company tends toward forward vertical integration when it controls distribution centers and retailers where its products are sold. Balanced vertical integration means a firm controls all of these components, from raw materials to final delivery.
Clockwise from top left 1. Largest Windmill - Enercon E-126 (upto 7MW) 2. Proposed Highway Turbines - Arizone State Univ 3. Bahrain World Trade Center 4. MARS - Magenn Power Air Rotor System 5. Sky Serpent - Doug Salem 6. Dutch proposal for Tree Windmill Ref: http://www.mywindpowersystem.com/2009/05/the-most-amazing-wind-turbines-designs/
Ref: http://en.wikipedia.org/wiki/Suzlon_Energy Suzlon One Earth is a self-supported office of Suzlon with it’s own electrical, water, food supply. Focus on being a holistic building rather than a “green” building.
Ref: http://www.suzlon.com/products/l2.aspx?l1=2&l2=10 6 main products. Countless parts manufactured by subsidiary companies. Unique in the fact that Suzlon customizes products to an exceptionally high degree for customers based on location and weather conditions. Smallest turbines especially useful for smaller clients.
Ref: http://www.suzlon.com/manufacturing/facilities_by_location.aspx?l1=5&l2=19 Since Suzlon produces most of its own components under it’s own subsidiaries or through partner companies, it is vertically integrated to a very high degree. Hansen Transmission allows for entry into the European Industrial gears Market REPower specializes in offshore wind turbines Joint Venture with Elin to manufacture Slip Ring Generators
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 . Vertical integration is one method of avoiding the hold-up problem