BUS 207 Lecture Notes - Lecture 4: Market Failure, Bilateral Monopoly, Vertical Integration

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 207
• Professor: Karen Ruckman

Document Summary

& accountability: alliance = can range from anything from handshakes to jv. Includes accounting, finance, hr, legal, marketing: in main vc b/c affect every activity individually, when firms very developed back in the day, had to perform all activities internally, now due to developed economy, can specialize. If that asset = source of competitive advantage: to avoid paying margins to supplier, b/c a vertically integrated producer will avoid high input prices during periods of, explanations: high d, e. g. E. g. using express main instead of regular mail: go unnoticed b/c big corps have complicated structures (many dpts/etc. ) so costs (esp. ones that are shared between these units) = hard to identify. Is specific b/c now pharmacy has to : learn new drug, distribute it, market it. L/t contracts = predicted by tce (& is reality too: pharmacies cro, pharmacies contact cro often, only when the specific molecule comes in.