GGR111H5 Lecture Notes - Lecture 15: Fordism, Horizontal Integration, Product Differentiation
Document Summary
*as you move from one stage you are adding value. Globalization of production & consumption ( point of production not same as point of consumption) Standardized production ,assembly line (most of the products look the same) Horizontal integration same sector, increased market share & bargaining power , integrating into same economy ex. Loblaws buys out metro to increase market share and controls much larger sector of economy, lager the market share greater power to bagern (kellogs example) Vertical integration different sector, control over supplies marketing. B/c all this costs so much money better to be in a partnership (ex. Ford and mazda same engine b/ reduces pollution) (beer brewing here with the lable from a different country with their persmission) Subcontracting & outsourcing (cheaper labor cost, getting access to cheaper labor to reduce labor cost) sub con. Just-in-time delivery (connecting point of production to line of assembly, this reduces cost ) Franchising ( no risking capital, brand name component)
