1. Draw the vertical value chain for your firm’s industry. List the major firms in each important activity along the chain (see Exhibits 8.5 and 8.6 as examples). Note that a firm’s name may appear multiple times in the value chain. This indicates some level of vertical integration by the firm. If your firm is in many different industries (e.g., GE), then choose the dominant industry or the one that intrigues you the most and use only that one for this analysis.
2. Is your firm highly vertically integrated? If yes, does it also employ taper integration?
3. Are any of the vertical value chain operations offshored? If so, list some of the pros and cons of having this part of the value chain outside the home country.
4. Use the preceding vertical value chain to identify the corporate strategy of the firm. In other words, where within the industry has the firm chosen to compete? Based on where it competes, describe what you now see as its corporate strategy.