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some of which are its suppliers and its customers. Materials, parts, other information, ideas and sometimes people all flow through the network of customer supplier relationships formed by all these operations. Supplier Side Demand Side
It helps an understanding of competitiveness. It helps identify significant links in the network. (Downstream and Upstream parts of the network)
1. 2. 3.
Disintermediation
Co-opetition
Vertical Integration can be defined in terms of three factors: 1. The direction of vertical integration. 2. The extent of vertical integration. 3. The balance among stages.
o Changes in Supply
1. The spatially variable costs of the operation 2. The service the operation is able to provide to its customers 3. The revenue potential of the operation