Ch$9$ Review Questions $($Hill$)$

$1.$ Under what conditions might horizontal integration be inconsistent with the goal of maximizing profitability?

$2.$ What is the difference between a company$$s internal value chain and the industry value chain? What is the relationship between vertical integration and the industry value chain?

$3.$ Why was it profitable for GM and Ford to integrate backward into component$-$parts manufacturing in the past, and why are both companies now buying more of their parts from outside suppliers?

$4.$ When will an industry tend to become dominated by platform ecosystems? What will determine which platform ecosystems are more successful in an industry than others?

$5.$ What value creation activities should a company outsource to independent suppliers? What are the risks involved in outsourcing these activities?

$6.$ What steps would you recommend that a company take to build mutually beneficial, long$-$term cooperative relationships with its suppliers?