Vertical Integration: It's About Time Return to Activity Score Proposals Materials snouia pursue? Band Manufacturing Case Manufacturing Retail Store Band Manufacturing Proposal Tasha Case Manufacturing In manufacturing our own bands, we will need to create a new manufacturing facility costing roughly $600,000. While we currently offer metal, woven, and leather bands, the proposed facility will only manufacture leather bands. This will decrease the number of bands we offer and decrease the average cost per band. Proposed costs are quite tentative as we have not manufactured any bands before. The proposed cost per band is based on efficient manufacturing which may take us between 4 and 24 months to reach. That's just what I was thinking. Current Proposal Number of Bands 12 4 Tasha Average Cost/Band $12 $9 $600,000 Investment $0 So, how do we maximize our gains from vertically integrating into case manufacturing? Tasha We need to encourage our designers to take advantage of our unique manufacturing capability. We should develop relationships with other watch manufacturers to build cases for them. We should focus on limiting expenses by producing only one or two types of watch cases