A key question leaders in any company must face is how vertically integrated to be. This means deciding which links in the value chain they should operate, versus outsource to others. There are plenty of pros and cons to vertical integration. Often, the largest pros center around reducing the transaction costs in negotiations with suppliers or customers, as well as capturing the profits currently enjoyed by others along the value chain.
Read MoreTopics: medical devices, medtech, diagnostics, Tobi Laczkowski, medtech distributors, healthcare, cordis, cardinal health, vertical integration
A key question leaders in any company must face is how vertically integrated to be. This means deciding which links in the value chain they should operate, versus outsource to others. There are plenty of pros and cons to vertical integration. Often, the largest pros center around reducing the transaction costs in negotiations with suppliers or customers, as well as capturing the profits currently enjoyed by others along the value chain.
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