Vertical Integration Growth Strategy

The article written by the Marta and Natalia presents information about the product differentiation strategy and vertical integration strategy adopted by the companies in order to ensure success in the market. According to the research study, product differentiation is a determinant of vertical integration in organizations. Vertical integration is highly important for the companies in case companies are interested to get a competitive edge by improvement in the production outcomes of the workforce. Quality control and innovation relate benefits can be also achieved through developing links between value chains. Furthermore, the researcher also claims that transaction cost can be reduced through the implementation of this vertical integration strategy. Vertical integration strategy is mainly adopted by the firms underlying the resources-based view. It supports organizations to ensure the development of competitive advantage through promoting the appropriate use of available resources (FERNÁNDEZ-OLMOS, DEJO-ORICAIN, & ROSELL-MARTÍNEZ, 2016).