Vertical Integration Case Study

1. VERTICAL INTEGRATION AND COMPETITIVENESS -

Vertical integration as a term is referred to the companies that own their supply chain in a specific market as one corporation. This helps the organization obtain control over its suppliers and buyers. The organization as a whole gains control over its various stages of production, distribution as well as retail sales.

There has been an ongoing concern amongst the analysts, lawyers and policy makers on the effects of vertical integration. Various industry analysts and researchers have been finding facts that support the fact that vertical integration poses positive effects such as an increase in productivity and efficiency due to larger investments and combating competition. There have been findings that support that vertical integration results in disadvantaging the consumers in a highly competitive industry.

There has been an increasing demand of telecommunication services in the last few decades which has led to an all time high demand of global operations in businesses , their capital investment as well as mobilization of the resources. This has further resulted in a lot of changes in the lifestyle of the people within specific geographies that includes an increasing demand for the latest of technology as well.

This resulted in huge competitive scenario where privatization of companies is increasingly affecting the norms and their regulations at the worldwide scale.

For BT , the domestic market was full of competition and this led to an internal diversification where BT strived for to become an industry leader. It successfully positioned itself in the international operations, still struggling to get lead over the competitive market share, at the global level.

BT over the...

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... global arena which included joint- ventures at the global level, supporting of new strategic alliances and establishing a strong foothold in the global arena which was demonstrated and effective low- cost leadership.

2. ORGANIZATIONAL CULTURE AND DISRUPTIVE INNOVATION –

British Telecom in the past has faced issues with their customer service division. They were managing resources was a big concern and the real challenge was to turnaround and reform the policies that could enable the organization turn into a world- class organization.
British Telecom as an organization realized that there is a need to develop skill set and train the internal resources. There were tough calls to be taken on letting- go a few employees. In the past there had been several attempts towards reorganization of the internal structure, hence this time the initiative needed to be all the