M B A 8620 Lecture Notes - Lecture 6: Vertical Integration, Perfect Competition, Marginal Cost
22 Sep 2016
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Watch videos on perfect competition in blackboard: divided in 3 parts. Where we are: supply and demand, production and cost, elasticity. Now: model of perfect competition, table in chapter 7. 1. Strategic behavior: the way you behave vs your competitors. Case presentation #1: returns to scale for crocs. Acquired a company in canada that makes foam based resin material in 2004. More popular around the world and not that popular in the us. The ceo pablo isla: the vertical integration of our production systems allows s to place a garment in any store around the world in a period of between two or three weeks, 3 ways to vertical integration. Balances integration (both: they are not fully integrated, they have got their suppliers to close knit with them, their strategy is to reduce transaction cost. But the most important is control from suppliers to stores: empowering managers and aligned.
